FX.co ★ UK Trade Gap Smallest in 4 Months

The UK trade deficit narrowed to £4.34 billion in December 2025, from a downwardly revised £5.56 billion in November, marking the smallest trade gap since August. The improvement came as exports declined less sharply than imports.

Total exports fell 1.0% month-on-month to a three-month low of £76.96 billion, while imports dropped 2.4% to a three-month low of £81.30 billion.

Goods exports decreased 3.2% on the month to a three-month low of £30.09 billion, reflecting weaker shipments to both EU countries (-1.9%) and non-EU countries (-4.4%). The decline was driven mainly by lower exports of medicinal and pharmaceutical products to China, Japan, and South Korea. In contrast, exports of goods to the US, including precious metals, rose 2.5%, supported by higher exports of medicinal and pharmaceutical products and inorganic chemicals. Services exports increased 0.5% to £46.87 billion.

On the import side, goods imports fell 3.4% to a three-month low of £52.81 billion, while services imports edged down 0.5% to £28.49 billion, also a three-month low.