In These New Times

THE gap between goods imported and exported in the UK hit a record high in September, official figures revealed yesterday.

As deepening troubles in the eurozone took their toll, the deficit on trade in goods widened to £9.8bn in September, compared to an upwardly revised £8.6bn gap the previous month, the Office for National Statistics (ONS) said.

The record gap came as the volume of exports, excluding oil, fell 1.6%, which was driven by exports to the EU – down 3% – while import volumes were up 1.6%, driven by chemicals and consumer goods.

Vicky Redwood, chief UK economist at Capital Economics, said: “September’s trade figures suggest that the UK is already suffering the adverse effects of the eurozone crisis.”

The figures, which also showed the gap in trade of goods and services widening to an 11-month high of £3.9bn, will be a blow to Chancellor George Osborne, who has pinned his hopes on an export-driven recovery in the private sector.

The figures are not likely to improve as the crisis in the eurozone deepens, with Greece closer to defaulting on its debts and Italy now on the brink of requiring a bailout.