Media comment – ONS trade




8th December, 2017

Katharina Utermoehl, European economist at Euler Hermes, the world’s leading trade credit insurer, said:


The slight decrease in the trade deficit in October is unlikely to signal a structural improvement in the UK’s overall trade position.The export sector is currently the bright spot of the UK economy as British exporters benefit from the cyclical upswing in Europe. But the cheaper pound has so far failed to fuel a pronounced rise in exports sufficient to reduce the UK’s chronic trade deficit. After all, in light of the high import content of British goods sold abroad, the increase in import costs has forced UK exporters to respond by raising selling prices with a view to protect profit margins.Going forward, even a more notable decline in the trade deficit is probably rather reflective of weakening domestic demand, rather than the onset of an export boom. After all, the exchange rate volatility and Brexit-related uncertainty, particularly with regard to the future EU-UK trade regime, is bound to keep a lid on UK export dynamics going forward.


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Media contacts:

Euler Hermes PR contact
Adrian Russell
+44 (0)20 7860 2728

Public relations agency contact
Alastair Henry
+44 (0) 161 235 0320


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