The first three months (Q1) of 2018 saw the UK’s total trade deficit (goods and services) narrow by £0.7 billion to £6.9 billion.
The shift was mainly due to falling goods imports from countries outside the EU, according to the Office for National Statistics (ONS).
In its latest Statistical Bulletin: UK Trade: March 2018, the ONS reveals that the trade in goods deficit narrowed £1.5 billion with non-EU countries and widened £0.4 billion with the EU Member States in 2018 Q1.
The narrowing goods deficit with non-EU countries was largely due to falls in imports of machinery and transport equipment (mainly ships and aircraft), and miscellaneous manufactures (mostly clothing and works of art) of £1.3 billion and £0.5 billion respectively over the quarter.
According to the ONS, the fall in imports of goods from non-EU countries was due to declining volumes as import prices rose in the three months to March 2018.
Over the longer period of 12 months to March 2018, the total trade deficit narrowed £13.3 billion to £26.6 billion. That was due, the ONS explains, to export growth of 9.2% exceeding a rise in imports of 6.4%.
During that same 12-month period, the UK’s trade in goods deficit with the EU narrowed £2.9 billion, while with non-EU countries it widened by £0.7 billion.
The positive export figures were welcomed by International Trade Secretary, Liam Fox, who pointed out that the falling trade deficit will help households across the UK feel the benefits of a stronger economy.
“It is clear evidence,” he said, “that the world wants to buy high-quality UK goods and services, and my department is putting the country in a position to benefit.”
Speaking during a visit to Scotland, Mr Fox also highlighted a 21% rise in exports of Scotch Whisky, which are now worth £4.4 billion.
