UK runs goods trade deficit of $28.7B in July

By Mucahithan Avcioglu

ISTANBUL (AA) - The UK's trade balance posted a deficit of £21.2 billion ($28.7 billion) in July, mostly unchanged from the previous month, the Office for National Statistics (ONS) said on Friday.

The market had expected the monthly deficit to come in at £21.6 billion.

The country's goods exports totaled £30.6 billion in current prices, up 6.6% month-on-month, while goods imports reached £51.8 billion, rising 5.4% in the same period, the office said.

Exports to EU member states were at £15.2 billion, up 4.6% monthly in July, while imports came in at £27.2 billion, also up 5.5%, resulting in a deficit of £12 billion.

The trade deficit to non-EU countries was £9.2 billion, with exports rising 8.5% to £15.4 billion and imports climbing 5.4% to £24.6 billion.

Exports to the US climbed by £0.8 billion in July, mainly due to a rise in exports of material manufactures.

"There were also increases in exports of chemicals and machinery and transport equipment. The value of goods exports to the United States remained below their pre-tariff levels," it said.

Meanwhile, imports from the US declined by £0.5 billion in July, primarily due to a fall in imports of machinery and transport equipment linked to lower imports of aircraft.

The office reminded the trade deal between the UK and the US and said, "There have been considerable changes in the United States international trade policy in recent months, which has posed challenges for UK businesses.

Some 33% of businesses with 10 or more employees that had exported goods in the last 12 months said they were impacted by US tariffs in the last month, according to the ONS.

In total, 31% of businesses that exported goods expected an impact in the next month, while the most reported expected impact was having to pass on additional costs to customers (13%).