UK's goods trade deficit reached a record high this July as imports increased sharply and exports fell, figures released by the Office for National Statistics (ONS) show.
The goods deficit stood at £8.7bn, increasing from £7.5bn a month earlier, becoming the biggest deficit since 1998. Deficit on goods and services increased from £3.9bn in June to £4.9bn in July.
According to the ONS, the UK's goods and services trade deficit of £13.2bn in the three months to July was the highest figure noted since record-keeping of deficit began in the 17th century.
An increase in oil, pharmaceuticals and organic chemicals imports was in part responsible for a 3.1 per cent value increase in imports over the month.
Devaluing the pound has not helped the case of British exports as sales of UK goods overseas fell by £200m while imports increased by £900m.
However, services such as banking, insurance and accountancy helped offset the widening deficit in goods, generating a surplus in trade of £3.8bn in July.
