Investing.com - The U.K.’s goods trade deficit widened in May after the prior month’s reading was revised lower, and as both exports and imports decreased, official data showed on Friday.
In a report, the U.K. Office for National Statistics (ONS) said the country's goods trade deficit widened to a seasonally adjusted £9.88 billion from a deficit of £9.41 billion in April.
The prior month’s data was revised from an initial reading of £10.53 billion.
Economists had expected the goods trade deficit to come in at £10.65 billion in May.
Meanwhile, the trade deficit with regard to countries that do not form part of the European Union also widened to £2.57 billion in May, from the prior month’s deficit of £2.52 billion, revised from the initial reading of £2.60 billion.
Analysts had forecast the deficit to settle at £2.90 billion.
U.K. trade data shows the extent of import and export activity, a key contributor to the overall economic growth of the U.K.
Worth noting, May’s deficit data came prior to the U.K. vote to leave the European Union and posterior slide in the pound to 31-year lows. Some experts commented that the weaker pound was likely to increase exports and decrease imports, but the depreciation in sterling will not be reflected until the third quarter data is released.
After the release, GBP/USD was trading at 1.2935 from around 1.2941 ahead of the announcement, while EUR/GBP was at 0.8559 from 0.8556 earlier.
Meanwhile, European stock markets were mixed. London’s FTSE 100 slipped 0.10%, the Euro Stoxx 50 gained 0.25%, France's CAC 40 rose 0.20%, while Germany's DAX traded up 0.47%.