The trade deficit for the U.K. narrowed in the first month of the year to the lowest level in nearly a year as exports surged on stronger demand for manufactured goods, according to The Daily Telegraph. On Thursday, the Office for National Statistics reported that the trade deficit for the U.K. with the rest of the world narrowed to £3 billion in January from $5.5 billion, which is the lowest level since February 2010. Exports added 6.1% on a record high £37.6 billion in exports for manufactured goods, while imports added only 1.9% during January.
The data showed that the trade deficit for services inched lower to £4.1 billion, while the goods trade deficit shed over £2 billion to £7.06 billion, outpacing economists forecasts. According to Bloomberg, manufacturing production jumped in January by 1%, which is the largest gain in 10 months. On Thursday, a separate report from the ONS showed the index of manufacturing rose to 92.9 to mark the highest point since October 2008, while manufacturing added 6.8% year-over-year, which is the most since 1994. Ross Walker of Royal Bank of Scotland said the strong data reflected “The strength of external demand,” but noted, “At the moment, there seems to be enough momentum in the global economy.”
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