UK Sees USD27.7B Trade Deficit in February

(MENAFN) Britain's trade deficit widened to £20.4 billion (approximately $27.7 billion) in February, overshooting market expectations of £19.4 billion, the Office for National Statistics (ONS) reported Thursday.

Exports slipped 1.5% month-on-month to £31.5 billion, while goods imports surged 4.7% to £51.9 billion — a combination that drove the deficit beyond analyst forecasts.

Trade with EU member states weighed heavily on the figures. Exports to the bloc edged down 0.7% to £15.4 billion, while imports climbed 2.3% to £27.1 billion, leaving a bilateral deficit of £11.7 billion. The gap with non-EU countries stood at £8.7 billion, as exports fell 2.3% to £16.1 billion and imports surged 7.5% to £24.8 billion.

US-bound exports bucked the trend, rising 11.3% — or £500 million — driven by a £500 million jump in machinery and transport equipment shipments and a £200 million increase in material manufactures excluding precious metals. However, the ONS cautioned that broader trade flows with Washington remain subdued, stating: "The value of goods exports to the United States has remained relatively low since the introduction of trade tariffs in April 2025."

Imports from the US fell 8.2%, or £400 million, largely due to a sharp decline in aircraft-related purchases, which dragged down machinery and transportation equipment imports.

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