10 Jul 2015
UK trade deficit narrows to its best reading in two years – TDS
FXStreet (Barcelona) - The TD Securities Team reviews the UK construction output and trade balance data release.
Key Quotes
“Construction output confirmed our downside expectations for May as analysts appeared too optimistic that this sector would post an immediate acceleration after the 7 May UK election. Activity fell 1.3% m/m, but the prior reading was revised slightly higher.”
“Separately, the UK international trade balance improved unexpectedly in May. The overall trade deficit narrowed to its best reading in two years as imports fell while exports remained flat. The drop in imports suggests some softening of demand in the UK economy during May, but we do not think it is likely to point to sustained weakness going forward.”
Key Quotes
“Construction output confirmed our downside expectations for May as analysts appeared too optimistic that this sector would post an immediate acceleration after the 7 May UK election. Activity fell 1.3% m/m, but the prior reading was revised slightly higher.”
“Separately, the UK international trade balance improved unexpectedly in May. The overall trade deficit narrowed to its best reading in two years as imports fell while exports remained flat. The drop in imports suggests some softening of demand in the UK economy during May, but we do not think it is likely to point to sustained weakness going forward.”