Economy

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Heading into the UK General elections and with the Brexit uncertainty goods and services from the UK hit a record high in October. However UK imports jumped 6.2% in October causing the UK trade deficit to be the largest in 6 Months.

British sea trade

The total UK trade deficit widened sharply to GBP 5.19 billion in October 2019, the largest since April, from a revised GBP 1.92 billion in the previous month. Imports jumped 6.2 percent, while exports rose, while to a new record but at a much tamer 0.8 percent.

Exports

Exports increased 0.8% from a month earlier to an all-time high of GBP 58.94 billion in October 2019, following a 0.6% advance in September.

Sales of goods rose 1.8% on the back of chemicals (1.9%), material manufactures (4.0%), machinery & transport equipment (1.4%), and miscellaneous manufactures (7.9%). Fuel exports slumped 11.7%

Exports of services fell 0.2%.

Goods exports to the EU rose 5.7%, in particular to Germany (5.7%), France (4.5%), the Netherlands (8.2%), Ireland (10.2%), Belgium (13.9%), Spain (2.3%), Italy (5.9%), Sweden (11.5%) and Denmark (14.8%).

Exports to non-EU countries fell 1.5%, mostly to China (-9.1%), Hong Kong (-10.4%), Switzerland (-11.5%), Canada (-10.1%), Singapore (-12.3%) and Norway (-10.0%). Increases were seen in exports to the US (8.3%), the UAE (7.3%), Japan (8.9%), Australia (25.9%), Turkey (2.3%), India (21.0%), Saudi Arabia (41.5%) and South Korea (6.1%).

Imports

Imports of goods and services to the UK rose 6.2% from a month earlier to GBP 64.13 billion in October 2019, following a 3.8% increase in September. Imports of goods and services to the UK rose 6.2% from a month earlier to GBP 64.13 billion in October 2019, following a 3.8% increase in September.

Goods purchases jumped 8.3%, boosted by fuels (17.8%), chemicals (14.3%), food & live animals (5.8%), machinery & transport equipment (3.9%), and miscellaneous manufactures (1.4%).

Services imports rose 1.3%.

Imports of goods from the EU advanced 4.4%, boosted by increases in purchases from Germany (4.6%), the Netherlands (11.5%), France (5.8%), Belgium (3.2%), Spain (2.4%), Ireland (9.1%) and Poland (1.8%).

Purchases from non-EU countries rose 12.7%, driven by imports from China (15.9%), the US (5.9%), Switzerland (59.8%), Norway (43.9%), Turkey (19.8%), India (39.5%), Canada (6.5%), Australia (53.4%) and Hong Kong (5.0%). By contrast, shipments from Japan and Russia dropped 4.9 and 6.4% respectively.

United Kingdom’s Top 10 Exports

The highest dollar value in UK global shipments during 2018 with the percentage share each export category represents in terms of overall exports from United Kingdom.

  1. Machinery including computers: US$72.3 billion (14.8% of total exports)
  2. Vehicles: $54.6 billion (11.2%)
  3. Gems, precious metals: $47.4 billion (9.7%)
  4. Mineral fuels including oil: $43.7 billion (9%)
  5. Pharmaceuticals: $30 billion (6.2%)
  6. Electrical machinery, equipment: $28.8 billion (5.9%)
  7. Optical, technical, medical apparatus: $19.1 billion (3.9%)
  8. Aircraft, spacecraft: $19 billion (3.9%)
  9. Plastics, plastic articles: $12.3 billion (2.5%)
  10. Organic chemicals: $11.3 billion (2.3%)

United Kingdom’s top 10 exports accounted for more than two-thirds (69.5%) of the overall value of its global shipments in 2018. This balance has largely stayed the same in 2019

Source: Trading Economics

From The TradersCommunity News Desk

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