UK exports hit record high

Britain exported a record £78.4bn of goods between April and June thanks to surging demand from countries outside Europe in the latest sign that the recovery is taking hold.

The all-time high for the second quarter came after a record-breaking performance in June, with exports of £26.9 billion, up by £1.3 billion from May, according to the Office for National Statistics (ONS).

This saw the UK trade deficit on goods – the balance between imports and exports – narrow to a better-than-expected £8.1 billion in June from £8.7 billion the previous month.

The official figures add to mounting cheer over the UK recovery after a raft of upbeat reports from key sectors and boost hopes of rebalancing the economy away from imports and towards exports.

Howard Archer, chief UK and European economist at IHS Global Insight, said the trade data were “encouraging for hopes that growth is not only strengthening but becoming more broadly based”.

He said: “The hope is that a competitive pound and gradually improving global growth increasingly supports exports.”

But Martin Beck, UK economist at consultancy Capital Economics, raised doubts over a significant rebalancing towards exports.

“Growing signs of a consumer-led recovery, and the increased import demand that implies, means that the trade deficit will probably still struggle to narrow further over the coming months,” he said.