Today’s economic data released out of the United Kingdom showed that the trade deficit widened in September. This comes as imports led by oil chemicals imports surged by 3.8%, while exports remained basically unchanged. The September deficit was released at £9.81 billion. This was up from the forecasted £8 billion. Also telling, last month’s figure was widened to £8.62 billion from the initially reported 7.77 billion.
Although the trade deficit continues to widen, UK October industrial and manufacturing data released yesterday showed rises in production. However, The UK statistics office said the positive data will have a “negligible” effect on its GDP estimate. This is with the British GDP slated to fall over the next two quarters.
Last month, the Bank of England expanded government stimulus by £75 billion, and the government hopes to increase lending as the European debt crisis increases fears of a British recession.
The Sterling continued to drop against the Dollar following today’s data. The market has reached a daily low by the 1.6000 immediately following the release.
Although the trade deficit continues to widen, UK October industrial and manufacturing data released yesterday showed rises in production. However, The UK statistics office said the positive data will have a “negligible” effect on its GDP estimate. This is with the British GDP slated to fall over the next two quarters.
Last month, the Bank of England expanded government stimulus by £75 billion, and the government hopes to increase lending as the European debt crisis increases fears of a British recession.
The Sterling continued to drop against the Dollar following today’s data. The market has reached a daily low by the 1.6000 immediately following the release.