UK trade deficit widens to record gap in November

Britain's goods trade deficit with the rest of the world widened to a record level in November, official data showed on Tuesday, suggesting weaker sterling failed to boost exports as policymakers had hoped.

The Office for National Statistics said that Britain's goods trade gap grew to 8.330 billion pounds in November from October's downwardly revised 7.631 billion, the biggest since records began in 1697.

Economists had forecast a deficit of 7.5 billion pounds.

The goods trade gap with non-European Union countries also hit a record, expanding to 5.304 billion pounds from 4.437 billion. Analysts had forecast a deficit of 4.25 billion pounds.

The Bank of England had been hoping that the weaker pound would help support British exports during the global downturn and rebalance the economy away from its dependence on domestic consumption. This data provides little evidence of this.

Total exports of goods fell by 6 percent in November, while imports fell by just 2 percent. Exports to EU countries were virtually unchanged, but exports to non-EU countries tumbled 12.5 percent.

A fall-off in exports to the United States, down 645 million pounds, made up around half of the overall fall in exports.

Economists have treated British trade data with caution in recent years due to the effects of import-export sales tax fraud within the European Union, although the ONS says that the effect of this is now greatly reduced.