UK non-Europe exports hit all-time high

The UK’s economic recovery is continuing apace, figures have revealed, with the global trade deficit shrinking by considerably more than expected.

The Office for National Statistics said imports and exports rose to their highest level for almost two years in June, combining to reduce the shortfall to £7.4 billion, comfortably outperforming estimates of £7.8bn.

Exports increased by 4.3% to £22.4bn, with the value of goods bought by non-European countries, particularly the US, reaching an all-time high.

Imports, meanwhile, gained 1% to stand at £29.8bn – the second-highest value since July 2008.

Headline results included an increase in oil exports (up by £525m), chemicals (up by £216m) and intermediate goods (up by £78m), as well as a £130m drop in imports of capital goods, which are used to make final products.

Alan Clarke, an economist at BNP Paribas, said the results were good news for the manufacturing sector. “The fact that companies have been sucking in intermediate goods and raw materials shows signs of life in manufacturing,” he said.

The statistics come not long after Prime Minister David Cameron last month promised a “messianic” pursuit of global trade. The coalition Government and UK businesses have since then signed several lucrative deals with emerging countries such as Turkey and India.

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