Slight fall in UK trade deficit

The UK's trade deficit fell slightly in August but not by as much as many analysts had predicted.

According to the Office for National Statistics, the gap between imports and exports fell to £8.2bn from £8.24bn in July.

The service deficit remained constant at £3.5bn while the deficit on goods and services combined fell slightly to £4.7bn.

But many had predicted the gap would shrink by a far greater amount as exporters benefited from a weaker pound, making UK products more attractive to overseas buyers.

Exports of oil rose during August but ships, cars and chemicals all fell as the global economic crisis affected spending.

Manufacturers had been hoping a growing export market on the back of a more favourable exchange rate would go some way to alleviating the weak domestic market.