UK DATA: Jul global goods deficit Stg8.667bn vs Stg7.532bn in Jun
–Jul global goods/services deficit Stg4.916bn vs Stg3.932bn in Jun
–Jul global goods deficit ex oil/erratics Stg7.699bn vs Stg6.885bn Jun
–Jul global goods deficit median forecast Stg7.6bn; total Stg3.3bn
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The global goods trade deficit widened to Stg8.7bn in July from Stg7.5bn
in June, the highest shortfall since records began in 1697. This was
mainly due to a sharp, 3.1% m/m rise in imports, which was mainly in
chemicals and oil. The value of exports declined 0.9% m/m following a
4.2% rise in June. These data are disappointing and don’t live up to BOE
hopes of a rebalancing of the economy away from imports towards
exports. Still, there are a few caveats here. First, the export decline
did follow a large rise last month. Second, part of that 3.1% m/m rise
in imports was oil related due to maintenance work on domestic oil
fields which boosted oil imports.