UK trade deficit to widen in May

The deficit on UK goods and services narrowed sharply from £3093m in March to £1202m in April. A fall in the goods deficit excluding erratics caused the deficit to narrow largely, eventhough the services balance was relatively stable. 

"Unfortunately, the business surveys do not corroborate the improvement in goods trade; they show a fall in export orders so we do not expect that the reduction in the deficit will last. Accordingly, we predict the overall deficit to rise to £2000m", noted Societe Generale.