The conditions in UK continue to be the source of surprise for investors and policy makers alike! With the rise in sterling and recent appreciation to hover around its fair average for now around $1.60 trade still found good support. The trade deficit in February unexpectedly contracted on record surge in exports on the month which helped ease some of the woes surrounding the outlook for growth in the United Kingdom.
The Visible Trade Deficit declined to 6776 million pounds from an upside revised previous of 7789 million pounds from the reported 7057 million. The data were stronger than expected and opposed the expected widening in the deficit to 8000 million pounds.
The trade deficit with Non-EU nations fell sharply to 2849 million pounds from a revised 4210 million from 4173 million and also opposed to the expected widening to 4900 million.
In result the total trade deficit shrunk to 2443 million pounds from a revised 3858 million from 2950 million and the expected 3950 million.