August UK trade gap above forecast

The goods trade deficit with the rest of the world was larger than forecast in August and July's deficit. It showed the biggest monthly goods trade gap since records began in 1697.

Overall the figures suggest any boost to exporters from a weaker pound has yet to generate substantial improvements in the trade balance.

"The figures are very disappointing," said Philip Shaw, chief economist at Investec.

"In the grand scheme of things, these are relatively minor figures, particularly in a week like this week, but they do show the extent to which the UK economy is imbalanced."

The Office for National Statistics said the goods trade gap narrowed to £8.198 billion from July's upwardly revised £8.238 billion. Economists had forecast a deficit of £7.6 billion in August, based on July's initially reported gap of £7.67 billion.

The statistics office blamed the revisions on a large number of late returns.

The goods trade gap with non-EU countries widened to £5.165 billion from £4.778 billion. Analysts had forecast a deficit of £4.6 billion.

The overall trade gap, which includes services - the country's traditional strong point - was in deficit to the tune of £4.7 billion, broadly unchanged from the previous month.

There was an improvement in the oil balance which posted its narrowest deficit since July 2007 of £235 million after July's hefty £1.629 billion deficit which has been partly due to refinery maintenance work.