U.K. trade deficit for July to maintain most of recent improvement

Within the total deficit of the U.K., the most heartening feature of late has been the contraction in the nonoil goods deficit. This development and coincided with a fall in exports orders and a dip in world trade growth are surprised analysts. Moreover, UK GDP growth continues to outperform that of its European neighbours. 

"We are therefore sceptical that this improvement can continue but in the very short term, at least, it will probably will. We predict the total deficit to widen only very slightly to £1700mn from £1601mn", says Societe Generale.