Trade deficit narrows in August

According to Office for National Statistics (ONS) figures released today, the country's deficit in goods and services dropped to £4.6bn in August from its five-year high of £5bn in July. Despite the improvement in the net trade position, the fact imports fell far more than exports has raised fears domestic demand may be stalling. The volume of imports fell 1.5% whilst exports declined just 0.2%. But with exports also declining, there is little indication the weak sterling is boosting demand for UK-produced goods. The surplus on trade in services was £3.6bn in August, compared with ...