Belfast Telegraph

Warning on spending as Britain's deficit hits £4.1bn

By Staff Reporter

Britain's trade deficit surged to £4.1bn in October as imports rose to their highest level for nearly a year, according to official figures.

The Office for National Statistics (ONS) said the total trade deficit for goods and services widened by a higher-than-expected £3.1bn between September and October, with the strong pound and global economic slowdown hitting demand for exported goods.

It added that the deficit for goods alone ballooned to £11.8bn from £8.8bn in September.

With oil and other volatile goods stripped out of the figures, the deficit was the biggest since ONS records began.

The report highlighted the UK's reliance on domestic demand to drive growth, with economists concerned that too much of the economy is dependent on consumer spending fuelled by borrowing.

While the monthly figures can be highly volatile, the three month data to October also showed the scale of the challenge in closing the trade gap.

The deficit on trade in goods and services was estimated at £8.4bn - up by £2.4bn from the three months to July.

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