Mixed news for economy with trade gap biggest in 11 months but manufacturing and construction activity increases

This article is more than 2 years old

This article is more than 2 years old

The UK’s trade position with the rest of the world worsened in August, as the weak pound failed to lift sales of goods abroad.

The overall trade deficit widened to £5.6bn in August from £4.2bn in July, for the biggest gap between imports and exports in 11 months, according to the Office for National Statistics (ONS).

The figures on British trade will prove worrying for government ministers looking to expand relationships outside the European Union.

UK productivity estimates must be 'significantly' lowered, admits OBR Read more

However, there were also more positive signals for the economy, with an increase in manufacturing and construction activity. Factories increased production by 0.4% in August from the previous month, according to the ONS, while building firms increased output by 0.3% over the same period.

ONS senior statistician Kate Davies said: “This latest set of key economic indicators presents a mixed picture with signs of improvement in UK manufacturing, offset by the continuing sluggishness of the construction sector and a widening of the underlying trade deficit in recent months.”