British trade deficit narrows in November 2014

British trade deficit in goods and services was estimated to hit 1.4 billion pounds (2.1 billion U.S. dollars) in November 2014, the smallest reading since June 2013, the Office for National Statistics (ONS) said on Friday.

The figure was smaller than the 2.2 billion pounds recorded in October 2014.

Britain registered a 8.8 billion pounds deficit on goods trade, and an estimated surplus of 7.4 billion pounds on services in November, data showed.

Between October and November 2014, exports of goods fell by 0.1 billion pounds to 24.4 billion pounds, while imports of goods fell by 1.1 billion pounds to 33.2 billion pounds, of which oil imports decreased by 0.7 billion pounds over the same period, figures showed.

In the three months to November, the trade in goods deficit narrowed by 2.5 billion pounds to 29.2 billion pounds, with exports increased by 2 billion pounds to 73 billion pounds and imports dwindled by 0.5 billion pounds to 102.2 billion pounds, figures showed.

From a geographic perspective, in the three months to November, Britain recorded its largest ever trade in goods deficit, which was 7.8 billion pounds, with Germany, reflecting a decrease in exports and a slight increase in imports, said ONS.

Maeve Johnson, UK Economist at Capital Economics, commented in a note November's trade data provides an encouraging sign that the underlying trade position may be improving.

"Looking ahead, low oil price should help to reinvigorate Britain's economic recovery. Providing the collapse in oil price is sustained, 2015 should be a better year for manufacturers and exporters," he said. Endit