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UK Trade Deficit Swells Beyond Market Expectations in February
(MENAFN) Britain's trade deficit swelled beyond market expectations in February, reaching £20.4 billion (approximately $27.7 billion) — a deterioration from the prior month — the Office for National Statistics (ONS) revealed Thursday. Analysts had penciled in a shortfall of £19.4 billion for the period.
Total exports slipped 1.5% month-on-month to £31.5 billion, while goods imports climbed 4.7% to £51.9 billion, widening the gap between what the country sells and buys abroad.
The trade imbalance with European Union member states deepened to £11.7 billion, as exports to the bloc edged down 0.7% to £15.4 billion while imports rose 2.3% to £27.1 billion. Outside the EU, the deficit with non-member nations stood at £8.7 billion, driven by a sharper 2.3% drop in exports to £16.1 billion and a substantial 7.5% surge in imports to £24.8 billion.
Trade flows with the United States offered a more nuanced picture. Exports to Washington rose 11.3%, or £500 million, in February, fuelled by a £500 million increase in machinery and transport equipment shipments and a £200 million uptick in material manufactures — excluding precious metals. Imports from the US, however, contracted 8.2%, or £400 million, largely on the back of reduced aircraft purchases pulling down machinery and transportation equipment inflows.
"The value of goods exports to the United States has remained relatively low since the introduction of trade tariffs in April 2025," ONS said in a statement.
The figures underscore the continued strain on Britain's trade position as shifting tariff policies and subdued export demand weigh on the country's external accounts.
Total exports slipped 1.5% month-on-month to £31.5 billion, while goods imports climbed 4.7% to £51.9 billion, widening the gap between what the country sells and buys abroad.
The trade imbalance with European Union member states deepened to £11.7 billion, as exports to the bloc edged down 0.7% to £15.4 billion while imports rose 2.3% to £27.1 billion. Outside the EU, the deficit with non-member nations stood at £8.7 billion, driven by a sharper 2.3% drop in exports to £16.1 billion and a substantial 7.5% surge in imports to £24.8 billion.
Trade flows with the United States offered a more nuanced picture. Exports to Washington rose 11.3%, or £500 million, in February, fuelled by a £500 million increase in machinery and transport equipment shipments and a £200 million uptick in material manufactures — excluding precious metals. Imports from the US, however, contracted 8.2%, or £400 million, largely on the back of reduced aircraft purchases pulling down machinery and transportation equipment inflows.
"The value of goods exports to the United States has remained relatively low since the introduction of trade tariffs in April 2025," ONS said in a statement.
The figures underscore the continued strain on Britain's trade position as shifting tariff policies and subdued export demand weigh on the country's external accounts.
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