The UK's trade deficit with the rest of the world increased in March to £3.7bn, according to the Office for National Statistics.

The trade deficit rose from £2.2bn in February to £3.7bn in March, as the bad weather in January hindered the UK economy.

Exports crept up by just 1% in March a imports rose by 5.2%, showing that despite the weak pound the UK is struggling to export goods.

"Recent events in the euro-zone - the UK's biggest trading partner - clearly cast a shadow over the longer-term prospects for UK exporters," said Vicky Redwood, economist at Capital Economics.