MercoPress. South Atlantic News Agency

Rebound in exports helps to narrow UK trade deficit in February

Rise in good exports was the highest monthly increase since 2003

A rebound in exports helped to narrow the UK trade deficit in February, official figures have shown. The trade deficit in goods and services shrank to £2.1bn, down from a £3.9bn deficit in January.

The goods deficit narrowed to £6.17bn in February, down from £7.52bn the month before and the smallest goods deficit since June 2006.

Goods exports jumped 9.5%, rebounding after exports in January were affected by the heavy snow, analysts said.

The rise in goods exports - which was the biggest monthly increase since January 2003 - was boosted by a big jump in overseas chemical sales. Goods imports were barely changed from January's figure.

The news lifted the pound slightly against the dollar, with sterling rising to $1.5394 from $1.5378.

“The narrowing trade gap reported in today's figures will be seen as a welcome marker of improvement and another signal of potential growth for the UK economy throughout 2010,” said Iain MacDonald, head of trade product at Barclays Corporate.

”The contracting deficit should also help settle concerns over a 'double-dip' recession and quell fears that January's fall in exports was a long-term trend”.