UK trade balance narrowing as July export dip partly reversed

UK rising surplus on the services account is more than offset by a larger deficit on the goods account. The question to arise from the recent data is whether the deficit in goods trade has finally stopped widening. 

In May it narrowed sharply as imports from the non-EU fell, but then it widened again in July as exports to the EU suddenly dropped as well. Both these moves were erratic and are probably not indicative of trend change. 

"It is predicted that the trade in goods and services deficit will fall in August as part of that July dip in exports is reversed. The deficit should fall from £3371mn to £2000mn", says Soceite Generale.