LONDON (Reuters) - Britain’s goods trade deficit narrowed in November as exports rose more than imports, official data showed on Wednesday.
Goods balance -9.164 -9.487 -9.05
Non-EU goods balance -4.519 -4.502 -4.20
- Highest value of goods imports from EU 27 since May 2006
”I suspect what they confirm is that trade will act as a drag on the Q4 (GDP) numbers. The pattern in trade volumes looks set up that way. It just highlights the downside risks to Q4 numbers that are due out in a couple of weeks time.
“If you look at the numbers on trade throughout 2012, it’s quite evident that net trade was a drag on growth. We can only put that down to weakness in the euro zone. Uncertainty around the euro zone debt crisis has not only hampered UK exports, but there is also some evidence that UK firms have turned down business in parts of the euro zone due to credit risk.”
”This is all a bit in the rear view mirror now. One would hope that as the mists being to clear a little bit in the euro zone in 2013, then perhaps we’ll get a little bit less of a drag from trade this year.
“I wouldn’t overdo the gloom. They weren’t great numbers but were more or less in line with expectations. We didn’t expect much from these numbers and didn’t get much.”
Reporting by UK economics team