UK's goods trade deficit rises to $27.2B in August

By Mucahithan Avcioglu

ISTANBUL (AA) - The UK's trade balance posted a deficit of £20.3 billion ($27.2 billion) in August, up from the previous month, the Office for National Statistics (ONS) said Thursday.

The market had expected the monthly deficit to come in at £21.8 billion in August.

The country's goods exports totaled £31 billion in current prices in August, down 3.3% month-on-month, while goods imports reached £51.3 billion, unchanged from the previous month.

Exports to EU member states were at £14.7 billion, down 5.3% monthly, while imports came in at £27.6 billion, up 0.8%, resulting in a deficit of £12.8 billion.

The trade deficit to non-EU countries was £7.5 billion, with exports falling 1.5% to £16.2 billion and imports dropping 0.8% to £23.7 billion.

Exports to the US fell by £0.7 billion, mainly due to falls in exports of machinery and transport equipment, chemicals and material manufactures.

Meanwhile, imports from the US also declined by £0.5 billion, primarily due to a fall in buying of refined and crude oil.

"There have been considerable changes in the United States international trade policy in recent months, which has posed challenges for UK businesses," the statistics office said.

Some 32% 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.