Rise in exports lowers UK trade deficit by a third to £28.3bn

THE UK trade deficit narrowed by a third last year, new official data has revealed.

Compared to 2016, the gap between imports and exports reduced by £12.4bn to £28.3bn over the 12 months, according to the Office for National Statistics. The shift followed upward revisions to export levels for the final three months of last year.

The value of exports rose by 12pc to reach £68bn in 2017, surpassing the growth in imports, which rose by

9pc to £55bn.

Monthly data, which can be more volatile, showed a widening of the deficit in January, by £0.6bn compared to December. This is widely attributed to the temporary closure of the Forties oil pipeline, which carries North Sea crude oil and natural gas. It was out of operation for most of December due to an onshore leak. As a result, fuel exports fell and imports rose.

Meanwhile, the construction sector started the year in recession as commercial building work slumped and private house building slowed, according to the ONS, which reported a sharp 3.4pc fall in output in January. This tallied with other survey findings from the beginning of the year, although more recent data have suggested an improvement.

Separately, ONS data on production industries, including manufacturing, offered some positive signs yesterday. Manufacturing recorded its ninth consecutive month of growth in January.