A rise in car exports helped improve Britain’s trade deficit in August, with the monthly shortfall in the trade balance narrowed to £3.3bn from £4.4bn in July. However the UK was still heading for a huge deficit in the third quarter of the year after an upward revision to July’s shortfall.
Alongside the £500m rise in car exports in August, the chemicals industry sent more of its production to the US. Total goods exports increased by 3.5% to £23.6bn in August 2015 from £22.8bn in July 2015.
But this positive news was offset by the continued decline in Britain’s oil industry, which has been a major factor holding back progress this year. Lower production and the lower oil price have dented exports. The services sector recorded an improvement in its trade balance, however the UK continued to rely heavily on the financial services industry to pay its way in the world. Figures for the second quarter showed that the surplus on trade in services was £22.8bn, of which almost half £10.1bn was contributed by banks, insurers and the fund management industry.
Atlanta Fed President Dennis Lockhart said on Friday that an international slowdown and last month's weak U.S. jobs report show there is "a touch more downside risk" to the U.S. economy. Lockhart believes that "The economy remains on a satisfactory track and ... I see a (rate) lift-off decision later this year at the October or December FOMC meetings as likely appropriate,"
"However the data are giving off varied signals, and there is more ambiguity in the current moment than a few weeks ago," Lockarts comments suggest that last weeks disappointing US Job figures and economic turbulence in china is a concern for the fed.
There are no key announcements today