DHAKA: The UK trade deficit, which reflects the difference between imports and exports, shrank to £4.5bn in July from £5.6bn the previous month.

The Office for National Statistics (ONS) said, reports the BBC.

The narrowing of the gap reflected a 2% increase in exports of goods and services, taking them to £43.8bn.

Imports fell by 0.5% to £48.3bn.

Although the pound fell sharply after the Brexit vote, which should make UK products cheaper abroad, the ONS said it was too early for firm conclusions.

The pound was 15% lower against other currencies in July compared with the same time a year ago, the ONS said.

The ONS points out in its release that the general consensus among economic commentators is that the recent depreciation in the pound should boost export and manufacturing competitiveness.

However, it says this does not necessarily occur as the price of imported materials used to make UK goods rises as the pound falls.

BDST: 1534 HRS, SEP 11, 2016
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