BRITAIN’S trade deficit with the rest of the world narrowed in the three months after the country’s momentous vote to unshackle itself from the failing European Union (EU), official statistics have revealed.
The nation’s external trade deficit narrowed to £11billion in the quarter to the end of September, offering a boost to third-quarter growth, despite a plunge in sterling in the wake of Brexit.
Exports decreased by £0.2billion but imports were on the up by £1.2billion.
The imports exports results were in part driven by a record £8.7billion deficit with the EU.
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The Office for National Statistics (ONS) said there was little direct evidence of currency effects on trade – confounding Remoaners’ scaremongering tactics during the build up to the historic Brexit referendum.
The pound plunged by more than 10 per cent against the dollar and the euro following the momentous Leave vote and hit a 31-year low against the dollar, and lost further ground in October to hit its weakest-ever level against a basket of major currencies.
But ONS statistician, Hannah Finselbach said: “So far there is little evidence in the data of the lower pound feeding through into trade volume or prices.”
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The ONS said Britain's total trade deficit narrowed to £11 billion in the third quarter from £12.7 billion pounds in the April to June period, which was the highest since the end of 2013.
Meanwhile, manufacturers have reported a jump in foreign demand after the currency fell.
Higher costs for imports are often felt first when a country's currency falls, causing the trade deficit to widen temporarily before narrowing.
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The UK voted to leave the EU on June 23
But Brexiteers say Britain's large trade deficit with the bloc will help ensure a favourable deal after it hit a record £8.7 billion in September.
Britain's economy slowed much less than most economists had expected in the three months to September, with signs that it was supported by continued robust consumer spending.
Goods export volumes in the third quarter grew by 1.8 per cent after a 1.2 per cent fall in the previous quarter, while import volumes slipped 0.3 per cent, their first fall since 2015.
