UK trade gap widens in September

The trade gap is wider than had been expected

The UK's monthly trade deficit widened to a record in September, following a rise in imports of consumer goods, according to official figures.

The Office for National Statistics (ONS) said the goods trade deficit reached £7.754bn in September, marking a rise on £6.948bn in August.

The trade gap with non-EU nations also hit a record at £4.711bn from £3.953bn.

Analysts say the deficit, though wider than expected, is unlikely to have a significant impact on monetary policy.

Imports of consumer goods went up, especially cars. In addition, Britain imported more oil from Norway.

George Buckley, an analyst with Deutsche Bank said: "The rise in import volume growth at a time when export volume growth is falling is a concern.

"The question is what happens going forward. If domestic consumption weakens quicker than world trade, then we could see this balance improve."

The increase in the value of the pound against the dollar has made it more expensive for people abroad to buy British goods.