Investing.com - The U.K.’s goods trade deficit narrowed in January after the prior month’s reading was revised higher, even as the British deficit with the European Union (EU) reached a record high, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the country's goods trade deficit dropped to a seasonally adjusted £10.29 billion from a deficit of £10.45 billion in December.
The prior month’s data was revised from an initial reading of £9.92 billion.
Economists had expected the goods trade deficit to come in at £10.3 billion in January.
Of note, the ONS data showed that the U.K. trade deficit with the EU hit a record high of £8.1 billion after increasing from December’s £7.4 billion as Britain imported more from the European bloc.
Meanwhile, the trade deficit with countries that do not form part of the European Union also narrowed to £2.20 billion in January, from the prior month’s revised deficit of 3.02 billion, revised from the initial reading of £2.36 billion.
Analysts had forecast the deficit to settle at £2.90 billion.
U.K. trade data shows the extent of import and export activity, a key contributor to the overall economic growth of the U.K.
After the release, GBP/USD was trading at 1.4292 from around 1.4280 ahead of the announcement, while EUR/GBP was at 0.7792 from 0.7798 earlier.
Meanwhile, European stock markets were moving higher. London’s FTSE 100 advanced 1.53%, the EURO STOXX 50 gained 0.2.06%, France's CAC 40 rose 2.18%, while Germany's DAX traded up 2.04%.