British trade deficit widens sharply in August as production Falls
Tuesday, 09 October 2012
The British trade deficit more than doubled in August, as the
government's deficit reduction program and intense public sector cuts
hit the economy hard and stifle productivity. Some blame is also
aportioned to the turbulent international economic environment such as
the Euro zone crisis scene.
The country's Office for National Statistics (ONS),
which produced the data also show that the difference in goods and
services imported and exported widened to £4.2billion in August, from
£1.7billion in July.
The UK's deficit with the 27 countries of the European Union -
including the crisis-plagued euro zone - widened to £4.9billionn in
August from £4.4billion in July.
The Office for National Statistics said industrial production in
Britain decreased 0.5 percent in August compared with July and fell 1.1
percent on annual basis. Manufacturing output fell 1.1percent on the
month and 1.2 percent on the year.
Analysts expected industrial production to fall 0.5 percent on the month and 1.1percent on the year.
Separately, the ONS said the deficits in the British trade in goods
widened to £9.8 billion in August, reflecting a fall in exports and a
rise in imports, especially of oil. Also British industrial production
fell in August for the 17 th month in a row.
Britain's overall trade balance is reported to be a deficit of GBP4.2
billion, aided by a surplus in the U.K.'s balance of trade in services.
Regarding trade outside the EU, the UK's deficit was £5billion in
August, up from £2.9billion in July. The increase in total imports of
goods was mainly due to a jump in oil imports, by almost £1blíllion.
According to the report, it is held that the period includes the
Olympics in August, which may have affected international travel,
tourism, and employment.
Details of the report could be obtained here