UK trade deficit swells to £7.1bn in October

UK trade deficit widened in October as imports jumped more than exports.

Figures released by the Office for National Statistics revealed that the trade in goods deficit increased from £6.9 billion in September to £7.1 billion in October.

Analysts had projected a trade deficit of £6.85 billion.

The volume of imports (excluding oil) increased 4.3 per cent in October from previous month, while volume of exports was up by 3.8 per cent.

Speaking on the issue, Alan Clarke of BNP Paribas said, "We were hoping part of the recovery would come from [export] trade, but so far it's just not happening."

The deficit in goods & services climbed from £3.1 billion in September to £3.2 billion in October.

Sterling has shed about 17 per cent against rival currencies since the beginning of last year, making exports cheaper in the world market.