UK February trade gap narrows as oil exports rise

Britain's goods trade deficit with the rest of the world narrowed in line with forecasts last month to its smallest since August last year as oil exports rose and overall imports fell, official data showed yesterday.

The Office for National Statistics said Britain's goods trade gap narrowed to £7.487 billion in February from 7.924 billion in January. Economists had forecast a deficit of £7.5 billion.

The goods trade gap with non-EU countries narrowed to £4.023 billion from 4.274 billion - also the smallest since last August and confounding analyst forecasts for a deficit of £4.30 billion.

Analysts expect slower global economic growth this year to weigh on export demand and keep the trade balance firmly in the red.

"The trade balance is currently being impacted by two opposing forces - a weaker sterling and weakening global demand," said Alan Clarke, an economist at BNP Paribas said.