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U.K. goods trade deficit widens less-than-expected in January

Published 03/13/2012, 05:39 AM
GBP/USD
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Investing.com – The U.K.’s goods trade deficit widened less-than-expected in January, official data showed on Tuesday.

In a report, the U.K. Office for National Statistics said the country's goods trade deficit widened to a seasonally adjusted GBP7.5 billion in January from a deficit of GBP7.2 billion in December, whose figure was revised from a deficit of GBP7.1 billion.  

Economists had expected the goods trade deficit to widen to GBP7.8 billion in January.

The report said that the total trade deficit widened to GBP1.76 billion in January after posting a deficit of GBP1.2 billion in the preceding month. Analysts had expected the total trade deficit to widen to GBP1.9 billion.

Export prices of goods rose by 0.8% in January and import prices of goods rose by 0.9%, compared with December.

Excluding oil and erratic items, the seasonally adjusted volume of exports was 2.2% higher than in December, and the volume of imports was 1.8% higher in January compared with December.

Following the release of the data, the pound was fractionally higher against the U.S. dollar, with GBP/USD easing up 0.06% to trade at 1.5651.

Meanwhile, European stock markets were broadly higher after the open. London’s FTSE 100 gained 0.6%, the EURO STOXX 50 rose 0.8%, France’s CAC 40 added 0.8%, while Germany's DAX surged 0.85%.

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