UK trade deficit to maintain most of the recent improvement

Within the total deficit, the most heartening feature of late has been the contraction in the nonoil goods deficit. This development is surprising, given that it has coincided with a fall in exports orders and a dip in world trade growth. 

Moreover, UK GDP growth continues to outperform that of its European neighbours. 

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