UK trade deficit narrows in January

The UK's trade deficit narrowed in January, official figures show, but its goods trade gap with the EU widened to a record level.

the total trade deficit - covering goods and services - shrank to 拢3.5bn from 拢3.7bn in December.

The deficit in goods alone narrowed to 拢10.29bn - down from 拢10.45bn the previous month.

However, the goods trade deficit with the EU widened to 拢8.1bn, from 拢7.4bn.

Trade with the EU is coming under more attention because of the UK referendum on EU membership on 23 June.

Howard Archer from IHS Global Insight said UK exports remained "lacklustre in January, with the modest narrowing in the trade deficit being primarily due to a fall in imports".

The ONS said the narrowing of the total goods deficit between December and January was down to a drop in imports of 拢0.2bn.

showed that output in the UK's construction sector fell by 0.2% in January.

The figure was weaker than expected and comes after a 2.1% increase in output in December.

However, the ONS also said that during the final three months of 2015, construction output rose by 0.3%, whereas it had previously estimated that output fell by 0,4% in the quarter.