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U.K. goods trade deficit widens more-than-expected in August

Published 10/09/2012, 04:41 AM
GBP/USD
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Investing.com - The U.K.’s goods trade deficit widened more-than-expected in August, 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 GBP9.8 billion in August from a deficit of GBP7.3 billion in July.

Economists had expected the goods trade deficit to widen to GBP8.5 billion in August.

The report said that the total trade deficit widened to GBP4.2 billion in August after posting a deficit of GBP1.7 billion in the preceding month. Analysts had expected the total trade deficit to widen to GBP2.4 billion.

Excluding oil and erratic items, the volume of exports was 1.2% lower in the three months ending August 2012 compared with the preceding three months. The volume of imports fell 0.8% over the same period.

Following the release of the data, the pound remained lower against the U.S. dollar, with GBP/USD shedding 0.11% to trade at 1.6009.

Meanwhile, European stock markets were broadly lower. London’s FTSE 100 fell 0.3%, the EURO STOXX 50 slumped 0.45%, France’s CAC 40 edged 0.25% lower, while Germany's DAX declined 0.5%.

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