Recovery hopes rise as shrinking trade gap caps good week for Britain
Saturday 08 June 2013
A surprise fall in the nation’s trade gap with the rest of the world capped a stellar week for the British economy yesterday.
The UK’s goods trade deficit tumbled by £1bn to £8.2bn in April, making it £600m smaller than expected and the lowest since January. Including the services surplus, the overall deficit shrank from £3.2bn to £2bn. Net trade knocked 0.1 percentage points off the wider economy in the first three months of the year, but an improved picture means trade is more likely to buoy growth than drag it down in the current quarter – putting the UK on course for two-successive quarters of growth.
It comes as a week of good news has fuelled recovery hopes, including the fastest expansion in more than a year for services and manufacturing firms in May and a return to growth for Britain’s builders.
Car sales have returned to pre-recession peaks. The high street also shrugged off poor weather last month to grow sales, according to the British Retail Consortium.
The figures showed the deficit being closed by imports falling by 2.7 per cent in April, a much faster rate than the 1.3 per cent drop in exports seen over the month. This was due to the sharp narrowing of the trade gap with European Union countries.
Nida Ali, the economic adviser to the Ernst & Young Item Club, said the figures represented an “encouraging start to the second quarter”.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...