Trade gap shrinks as UK firms continue to boom after Brexit vote

THE Brexit boom continues to confound Remainer doom mongers after figures yesterday revealed that the trade deficit has shrunk massively since last year’s vote to leave the EU.

According to the Office for National Statistics the UK deficit on trade in goods and services narrowed to £8.5billion in the latest quarter, the three months to February 2017.

In another positive sign the FTSE 100 shot up by more than 46 points yesterday as traders expressed confidence in the British economy.

The figures were despite continued Project Fear claims by Remain supporters wanting to stay under Brussels rule that leaving the EU would severely damage the economy.

It comes against a backdrop of major companies – Google, Facebook, Nissan and others – announcing huge investments in the UK following the referendum result.

The only part of the UK to struggle is Scotland where the economy contracted by 0.2 per cent when investment dried up after SNP First Minister Nicola Sturgeon announced that she wants an independence vote so Scotland can rejoin the EU.

With manufacturers boosted by the slight fall in the pound, the total trade deficit narrowed by £0.3billion between the three months to November 2016 and the following three months to February 2017.

It reflected a 3.1 per cent increase in exports compared to a rise in imports of 2.7 per cent.

International Trade Secretary Dr Liam Fox, said: “We’re committed to supporting UK businesses large and small as they grow, and helping them connect with the international demand for our goods and services.

“These figures show the appetite for our exports post Brexit referendum and we’ll continue to bang the drum for UK businesses.”

In 2016 the top three commodities traded by the UK were cars, non-electrical and electrical machinery.

Combined, their values account for 32 per cent of all UK exports in 2016 and 30 per cent of all UK goods imports.

The property market showed early signs of the usual spring lift yesterday as prices rose in March, according to Halifax, the UK’s biggest mortgage lender.

Values were 3.8 per cent higher than in the same month last year putting the cost of a typical three-bedroom semi at £219,755 – up from £213,838 in March 2016. The Centre for Economics and Business Research expects the average UK house price to increase by £52,000 by 2021.