DHAKA: The UK’s trade deficit was worse than expected in February, official figures show, as its goods trade gap with the EU widened to a record level.

The Office for National Statistics (ONS) said the goods trade deficit was £12bn in February, while January's figure was revised sharply higher to £12.2bn, reports the BBC.

The goods trade deficit with the EU hit a record high of £8.6bn.

Meanwhile, industrial production fell by the most in two-and-a-half years.

In ONS figures released separately, the UK’s industrial output fell 0.3% in February from the previous month, the biggest decline since August 2013.

Manufacturing output fell by 1.1% from January, and was down 1.8% from a year earlier.

“Chancellor George Osborne will have been expecting a slight drop in today’s manufacturing production figures, especially amid the furore of steel giant Tata signaling their intention to close their Port Talbot plant, but the severity of the fall will have been surprising,” said Dennis de Jong, managing director at UFX.com.

“Global steel prices isn't the only issue hurting manufacturing production. The rapidly approaching Brexit referendum is on a knife edge and, with the outcome uncertain, it may cause orders to dry up until the votes are counted.”

The ONS said the total trade deficit figure for January was now £1.8bn bigger than previously estimated, because of a big revision in imports of non-EU goods, specifically gold.

The total trade deficit - in goods and services - was £4.8bn for February, while January’s figure was revised higher to £5.2bn.

BDST: 1727 HRS, APR 08, 2016
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