Though Britain’s overall trade deficit widened from £3.1 billion to £3.2 billion between January and February, reflecting a smaller surplus on services (down from £4.7 billion to £4.1 billion), there was some evidence in the latest numbers that the pound’s weakness is starting to help goods.
The trade deficit in goods narrowed from £7.8 billion to £7.3 billion, as exports rose and imports fell. There was a big narrowing of the good deficit with countries outside the European Union, down from £5.6 billion to £4 billion. More details here.
Meanwhile, ‘pipeline’ inflation pressues continued to ease, with output price inflation (factory gate inflation) down from 3% in February to 2% in March and input prices in the 12 months to March down 0.4%. More here.
Originally published at About David Smith’s EconomicsUK.com and reproduced here with the author’s permission.