Britain: Recovery hopes hit by poor export data

The UK's fragile economic recovery has suffered a jolt after figures revealed a sharp fall in exports to countries outside Europe.

In a sign of more pressure on the UK's first quarter GDP, the trade deficit on goods and services rose to euro 4.25b (£3.4b)in February, up from euro 3.03B (£2.5 b) the previous month and bigger than the euro 2.43b (£2b) expected by the City.

Despite the eurozone debt crisis, the trade deficit in goods with countries in the EU narrowed but there was a worrying 9% fall in exports to other countries, with fewer cars being sent to the US, Russia and China.

To add to the gloom, the Office for National Statistics (ONS) said the deficit in January was bigger than previously thought, dealing a blow to the Government's hopes for an export-led recovery.

EU-Digest