UK trade deficit expands by £7.1b in Q2

The UK saw a significant increase in international trade activity in June 2024, with goods imports rising by £3.3 billion (7.1 per cent) and exports climbing by £2.3 billion (7.6 per cent). This growth was observed across both EU and non-EU countries.

However, the broader trade picture for Q2 2024 (April to June) showed a widening deficit, as the total goods and services trade deficit expanded by £7.1 billion, reaching £13.3 billion, primarily due to increased goods imports.

Specifically, the trade in goods deficit grew by £7.8 billion to £52.4 billion as the rise in imports outpaced the increase in exports.

The surge in goods imports in Q2 2024 was largely driven by higher imports of machinery and transport equipment from both EU and non-EU countries, alongside increased fuel imports from non-EU sources.

Despite these increases, the trade in services surplus widened by £0.7 billion to £39.1 billion, reflecting a substantial rise in both service exports and imports.

Overall, while the UK experienced growth in both imports and exports, the larger increase in imports, particularly in machinery and fuel, contributed to a widening trade deficit in goods for the quarter.

Attribution: The Office for National Statistics (ONS)

Subediting: M. S. Salama