The following is an unedited transcript of the news release from the UK National Statistics.


The UK’s deficit on trade in goods and services is provisionally estimated to have widened in September to £5.1 billion, from a deficit of £4.2 billion in August. In the third quarter, the deficit on trade in goods and services widened to £14.0 billion, from an £11.5 billion deficit in the previous quarter.

Value of total trade in goods

The UK''s deficit on trade in goods in September is provisionally estimated at £7.8 billion, compared with £6.9 billion in August. The deficit with EU countries in September was £3.0 billion, unchanged compared with August. The deficit with non-EU countries in September was £4.7 billion, compared with £4.0 billion in August. In September, total exports of goods fell by one per cent to £18.9 billion while total imports of goods rose two and a half per cent to £26.6 billion. Exports to EU countries rose one per cent while exports to non-EU countries fell four per cent. Imports from EU countries rose one per cent and imports from non-EU countries rose four per cent. In the third quarter, the deficit on trade in goods widened by £1.9 billion to £22.3 billion. The deficit with EU countries narrowed by £0.5 billion to £9.1 billion and the deficit with non-EU countries widened by £2.4 billion to £13.1 billion.

In the third quarter, exports of goods rose by four and a half per cent and imports of goods rose six per cent. Exports to EU countries rose by seven and a half per cent and exports to non-EU countries rose by a half per cent. Imports from EU countries rose by four and a half per cent and those from non-EU countries rose by seven and a half per cent. The latest estimate of the trend suggests that the whole world goods deficit is fairly flat. The trends in the value of trade show both exports and imports fairly flat in recent months.

Volume of total trade in goods (excluding oil and erratics)

Provisional estimates show that the volume of exports fell four per cent while the volume of imports rose one per cent from that in August. In the third quarter, exports and imports both rose five per cent compared with the previous quarter. Changes in trade associated with VAT MTIC fraud mean that comparisons of volume and prices (both including and excluding trade associated with VAT MTIC fraud) should be treated with a great deal of caution. Latest estimates of volume trends show both exports and imports fairly flat in recent months.

Export and import prices (trade in goods)

September’s provisional estimates show that export prices rose one and a half per cent and import prices rose one per cent compared with August. In the third quarter, export prices rose one per cent and import prices rose a half per cent. This led to an increase in terms of trade.

Trade in oil

In September, the balance on trade in oil was in deficit by £0.6 billion, compared with a deficit of £0.7 billion in August. In the third quarter, the deficit on trade in oil was £1.5 billion, compared with a deficit of £0.2 billion in the previous quarter.

Trade in other commodities in the third quarter 2007

For exports, all the main commodity groups showed a rise in volume, except fuels and basic materials. Within finished manufactures, exports of capital goods rose 11 per cent, and of consumer goods other than cars rose nine per cent. Exports of cars rose eight per cent. Exports of chemicals rose two per cent, and exports of other semimanufactured goods rose one and a half per cent. For imports, all the main commodity groups showed a rise in volume. Within finished manufactures, imports of consumer goods other than cars, and of capital goods both rose nine per cent. Imports of cars rose four per cent. Imports of chemicals rose six and a half per cent and imports of other semi-manufactured goods rose two per cent.

For imports, all the main commodity groups showed a rise in volume. Within finished manufactures, imports of consumer goods other than cars, and of capital goods both rose nine per cent. Imports of cars rose four per cent. Imports of chemicals rose six and a half per cent and imports of other semi-manufactured goods rose two per cent.

Exports by country

Within the G7 group of countries, exports to France rose by £0.5 billion, to Germany by £0.3 billion, and to Italy by £0.2 billion. Exports to the USA fell by £0.2 billion. Among other countries, exports to both the Netherlands, and Belgium and Luxembourg rose by £0.4 billion. Exports to Spain rose by £0.2 billion, and to both South Africa and Poland by £0.1 billion. Exports to Norway and Finland both fell by £0.1 billion.

Imports by country

Within the G7 group of countries, imports from Germany fell by £0.5 billion. Imports from France rose by £0.4 billion. Imports from the USA and Italy both rose by £0.1 billion. Among our other trading partners, imports from Belgium and Luxembourg rose by £0.7 billion, and from Spain rose by £0.4 billion. Imports from Norway rose by £0.3 billion, and from the Netherlands, the Irish Republic, China, and Denmark all rose by £0.2 billion. Imports from Hong Kong, Switzerland, Saudi Arabia, Singapore and South Korea all rose by £0.1 billion.

TRADE IN SERVICES – SEPTEMBER