FX.co ★ UK Trade Deficit Smallest in 6 Months

The United Kingdom’s trade deficit narrowed to £3.45 billion in July 2026, from £5.54 billion in June, marking the smallest trade gap since January, when the country recorded a surplus. The improvement reflected rising exports alongside falling imports.

Total exports increased 2.1% month-on-month to £81.92 billion, while total imports slipped 0.4% to a five-month low of £85.37 billion.

Goods exports rose 4.4% to £34.41 billion, supported by higher shipments to both EU and non-EU markets. Exports to the EU grew 5.2%, and those to non-EU countries increased 0.6%. In both regions, the rise was driven primarily by stronger exports of machinery and transport equipment.

Services exports edged up 0.5% to £47.51 billion.

On the import side, goods imports fell 1.6% to a six-month low of £55.37 billion. Imports from the EU declined 1.4%, mainly reflecting lower purchases of machinery and transport equipment, while imports from non-EU countries rose 6.7%.

By contrast, services imports increased 0.7% to £30.0 billion.