Britain suffers record trade deficit in October

Falling exports meant Britain suffered a record and worse-than-expected goods trade deficit of nearly £3

Falling exports meant Britain suffered a record and worse-than-expected goods trade deficit of nearly £3.6 billion sterling in October.

The Office for National Statistics said the worsening in the trade position was widespread with deficits both with the rest of the European Union and rest of the world deteriorating.

There were lower exports to the Republic and France, although this was partly offset by lower imports from France.

September had seen a shortfall of £2.7 billion and City economists had on average predicted a similar number for October. The new figure emphasises the struggle manufacturers face against the downturn in world trade.

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Overall exports of goods fell nearly 4 per cent to £14.9 billion; imports, helped by buoyant consumer spending, were up 1.3 per cent to £18.4 billion.

The deficit with the EU widened sharply to £1.2 billion in October from £891 million the month before.

The non-EU deficit widened to £2.36 billion from £1.85 billion in September. There were lower exports to the United States and higher imports from South Africa.