Trade Figures Show Imbalance In Economy

12.00.00am GMT Tue 10th Feb 2004

Commenting on the record quarterly trade deficit announced today by the Office of National Statistics, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "The record UK balance of payments deficit undermines the Government's boast about the strength of the UK economy."

"The manufacturing decline weakens our ability to export and draws in more imports. The services sector is no longer able to cover the gap."

"The balance of payments deficit may yet become the dog that barks."

NOTES

The ONS report on UK Trade figures for December 2003 can be found at:

<http://www.statistics.gov.uk/pdfdir/trd0204.pdf>

In the fourth quarter the balance on trade in goods and services was a record £9.8 billion in deficit. This compares with a £9.1 billion deficit in the previous quarter.

The UK's balance on trade in goods and services in December is provisionally estimated as a deficit of £3.3 billion, compared with £3.2 billion in November.

The ONS note that the latest estimate of the trend suggests that the UK trade deficit is widening.