Britain's goods trade deficit unexpectedly widened in April as exports to countries outside the European Union fell sharply while imports dipped less, official data showed today.
The Office for National Statistics said the goods trade deficit grew to £10.1 billion - the second-largest gap since records began in January 1998. That compared to a deficit of £8.734 billion in March and economists' forecasts for a gap of £8.50 billion.
The goods trade deficit with non-EU countries widened to £5.2 billion in April from £4.179 billion in March and against forecasts for a gap of £4.18 billion.
Exports to non-EU countries fell 10.3% on the month, driven by lower sales of chemicals and cars.
Meanwhile, there was a record gap in goods trade with the EU, which absorbs the lion's share of Britain's goods exports. Exports of goods to the bloc dropped 6.8% on the month, outweighing a 3% fall in imports from the EU.
Separate non-seasonally adjusted ONS data showed that construction output fell 8.5% year-on-year in April.
A 4.8% slump in construction drove Britain deeper into recession than initially thought in the first quarter of this year, and an unexpected fall in British manufacturing output in April raised the risk of a longer recession.
In policymakers' latest bid to boost economic growth, Bank of England Governor Mervyn King said on Thursday that Britain would launch a scheme to provide cheap long-term funding to banks to encourage them to lend to businesses and consumers, and the central bank will activate an emergency liquidity tool.
