Trade deficit wider than expected

THE British trade deficit widened more than economists forecast in July as the gap with non-European Union nations reached a record mark, suggesting the pound’s appreciation is making British goods less attractive overseas.

The goods trade deficit was £7.1 billion (€10.4bn), compared with £6.5bn in July, the Office for National Statistics said in London. Economists forecast a £6.4bn gap.

A pickup in manufacturing, which helped power quicker economic growth in the second quarter, may be waning after the pound reached a 26-year high against the dollar in July.