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Economy in Britain   The overall trade deficit yawned

UK trade deficit widens by £2.6 billion over November

UK trade deficitThe UK trade deficit widened markedly in November due to surge in imports, according to data from the Office for National Statistics, sending the pound spiralling lower.

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The overall trade deficit yawned to £4.2bn by the end of November up from October's unusually small deficit of £1.5bn.

A £3.3bn increase in imports during the month was only partially offset by a £0.7bn increase in exports.

ONS attributed the widening of the deficit to increased imports of goods from both EU and non-EU countries.

Total trade prices for exports fell 1.9% and imports by 1% as sterling recovered slightly following the large falls earlier in 2016.

Economist Howard Archer at IHS Markit said the trade deficit appeared to remain on course for a narrowing in the fourth quarter compared to the £13.6bn third, "obviously welcome news for bringing down the troubling high current account deficit."

He said a rising volume of exports in November and October suggested support may be increasingly coming from the weakened pound.

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