FX.co ★ UK Trade Gap Largest in 5 Months

In August 2025, the United Kingdom's trade deficit expanded to £3.39 billion, rising from a revised £3.02 billion in July, and representing the most significant trade gap observed since March. Export figures experienced a month-on-month decline of 1.2%, settling at £77.42 billion, whereas import values decreased by 0.7% but reached a record high of £80.81 billion. Exports of goods suffered a 3.6% drop, with a notable 5.3% reduction in exports to the European Union, mainly attributed to decreased aircraft shipments to Germany. Exports to countries outside the EU contracted by 1.5%, largely due to diminished exports of manufactured materials, chemicals, and fuels. Specifically, exports to the United States, including precious metals, declined by £0.7 billion in August, influenced by reduced exports of machinery and transport equipment, chemicals, and manufactured materials. Conversely, service exports experienced a growth of 0.5%, amounting to £46.18 billion. On the import front, goods imports decreased by 1.1% to £52.42 billion, even as imports of manufactured materials, fuels, and chemicals from the EU increased. Service imports saw a slight rise of 0.2%, reaching £28.36 billion.