With record-breaking imports, the largest foreign trade deficit has been set to rise in Britain in December, while manufacturing production has already risen to eight months in the month, according to a statement released by the National Office for National Statistics (ONS) on Friday.
In December, with GBP 1.2 billion, the UK’s deficit of 3,652 billion in the previous month has risen to GBP 4,886 billion since September 2016, following the foreign trade turnover of goods and services. The market was expecting a foreign trade deficit of 2.4 billion pounds in December.
Following the foreign trade turnover of goods, Britain’s deficit of 13.576 billion was generated in December, higher than the previous month’s 12.456 billion pounds. Analysts expected a 11.60 billion-dollar deficit lower than November after the foreign trade turnover of goods to December.
In December, imports of goods and services rose by 3 percent to the highest level at the time, rising to 57.02 billion pounds from the previous year’s 55.35 billion pounds. Imports of goods increased by 3.8 percent, including 6.6 percent in fuels and 0.7 percent in services.
Import from the European Union increased by 6.5%, including Germany by 6.1%. Outside the EU, the United Kingdom imported by 0.8 percent in December, including 12.4 percent in Norway, and 7.9 percent in the United States.
Exports of goods and services grew by 0.8 percent to 52.12 billion pounds in December compared to 51.70 billion in the previous month. Exports of goods grew by 1.5 percent, including manufacturing products by 2.8 percent. Exports of services, by contrast, decreased by 0.1 percent.
Exports to the European Union rose by 6.9%, mainly due to 16.8% in Germany and 21.7% in France. Exports outside the EU dropped by 3.6 percent, to China by 27.4 percent, Hong Kong to 30.4 percent, and to South Korea by 20.3 percent. In the United States, exports to the United Kingdom increased by 6.9 percent in December.
British industrial output declined by 1.3 per cent in December compared to the previous month’s 0.3 per cent month-on-month growth in November. The market expected a 0.9 percent monthly drop in December, but the actual decline was greatest since September 2012.
Industrial production was mainly driven by a 19.1 percent decline in mining production, which was due to the closure of the Forties oil pipeline.
In annual comparison, industrial production stagnated in December instead of the expected 0.3 percent growth. In November, British production increased by 2.6 per cent compared to November 2016.
Within industrial production, the manufacturing industry’s production was up by 1.2 per cent, 1.4 per cent in December, but the pace of growth slowed down compared to November, when production grew by 3.8 per cent year-on-year.
On a monthly basis, manufacturing output was up 0.3 percent, as expected, after 0.2 percent growth in November. British manufacturing production in the eighth consecutive month showed growth on a monthly basis.
Source: MTI / Image: hir.ma /