* UK exports up 5 pct in July, fastest rate since Jan 08
* UK imports rise by 3.5 pct
* Figures raise hope global trade is recovering
(Adds quotes, details)
By Christina Fincher and David Milliken
LONDON, Sept 9 (Reuters) - British exports rose at their fastest monthly pace since the start of 2008 in July, keeping the country's trade gap on a narrowing trend and boosting optimism that global trade is picking up.
Official data on Wednesday showed the value of UK exports rose 5 percent on the month to 19.187 billion pounds ($31.73 billion) while the value of imports rose by 3.5 percent to 25.666 billion pounds.
Britain's global goods trade gap narrowed fractionally to 6.479 billion pounds from an upwardly revised 6.515 billion in June. Economists had forecast a deficit of 6.3 billion pounds.
"There are signs of underlying improvement and the fact that both exports and imports are picking up is indicative of the global recovery beginning to gain a bit of traction," said Ross Walker, economist at Royal Bank of Scotland.
However, trade was still markedly lower than a year ago.
Exports in the three months to July were worth 16 percent less than the same period a year ago, and imports were 18 percent down.
"There is some comfort to be taken from these figures," said Philip Shaw, economist at Investec. "Imports are falling more quickly than exports, implying some sort of rebalancing is in process."
The oil deficit widened to 537 million pounds from 433 million pounds in June as summer maintenance work curbed North Sea production. That deficit was the highest since July 2008, when there was also maintenance work.
Britain's goods trade gap with non-EU countries widened to 3.925 billion pounds from 3.667 billion pounds. Analysts had forecast a deficit of 3.5 billion pounds.
The total global trade gap, which includes services where Britain runs a surplus, widened to 2.447 billion pounds from 2.366 billion pounds, taking it to its highest since March. (Editing by Mike Peacock)