UK Trade Deficit Expands Significantly

The United Kingdom's trade deficit in goods and services has seen a notable increase, widening by £6.7 billion to reach £13.2 billion in the three months leading up to May. This development was highlighted in the latest figures released by the Office for National Statistics (ONS) on Friday.

Key Factors Behind the Widening Deficit

A £0.6 billion rise in both exports and imports during May played a significant role in this outcome. Specifically, the goods trade deficit expanded by £6.1 billion to £61.0 billion, whereas the services trade surplus experienced a slight contraction, decreasing by an estimated £0.6 billion to £47.8 billion.

Impact of US Trade Policy Changes

The report for May revealed an interesting dynamic in trade with the United States: exports of goods to the US increased by £0.3 billion, rebounding from a previous month's decline. Conversely, imports of goods from the US saw a substantial decrease of £0.9 billion. The ONS pointed out that recent shifts in US international trade policy have significantly influenced UK business operations, despite the trade agreement between the two nations that became effective on June 30.