FX.co ★ UK Non-EU Trade Deficit Narrows in July, Signalling Slight Improvement in External Balance

The United Kingdom’s trade balance with non-EU countries showed a modest improvement in July 2026, with the deficit narrowing to -£9.66 billion from -£10.45 billion in June 2026. The latest figures, updated on 11 September 2026, indicate a slight easing of external imbalances after a deeper shortfall in the previous month.

While the trade balance remains firmly in negative territory, the reduced deficit suggests either a pickup in exports to non-EU markets, a softening of imports, or a combination of both. Compared with June’s -£10.45 billion, July’s reading marks a step towards stabilisation in the UK’s trade performance outside the European Union.

Analysts and market participants will be watching upcoming releases to see whether this narrowing deficit becomes a sustained trend or proves a temporary adjustment within a still-challenging external trade environment for the UK.