The U.K. deficit in the global trade of goods narrowed in the first month of the year to the smallest amount in nearly a year on record oil exports, according to The Daily Telegraph. On Wednesday, the Office for National Statistics reported that Britain’s deficit in goods trade shrank to £7.06 billion in January from £9.69 billion in December, which was the worst monthly reading in history. The contraction in the deficit outpaced economists’ forecast for the gap to narrow to £8.5 billion.
The total trade deficit, including services, was also lower, contracting to £2.95 billion in January from £5.48 previously, which is the smallest since February 2010. Ross Walker of RBS called the report “encouraging,” but noted that the volatile readings mean, “The underlying positive is still that trade is making only a relatively modest contribution to GDP growth.” The gain was drive by a 6.1% increase in exports excluding volatile components, while the oil balance swung to a surplus of £118 million from a deficit of £727 million previously.