The UK's trade deficit increased to £3.8bn in May, according to the Office for National Statistics.

This is the largest gap in just under two years and is a bigger rise than predicted. Exports rose by less than 0.2% to £21.5bm, while imports rose by 2.4% to £29.5bn.

"While these figures confirm that exports are growing, the pace of expansion is inadequate. The competitive sterling exchange rate remains a helpful factor, but weakness in the eurozone is a major obstacle," said David Kern of the British Chambers of Commerce.