| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | £-22.16B | £-21.69B | £-22.05B |
| Imports - M/M | -3.5% | -0.2% | 1.7% |
| Imports - Y/Y | -3.9% | 2.1% | 4.2% |
| Exports - M/M | -6.3% | 2.2% | 3.0% |
| Exports - Y/Y | -10.8% | -5.4% | 3.9% |
Highlights
In June 2025, UK trade performance weakened, with goods imports falling by £1.7 billion (3.4 percent) and goods exports declining even more sharply by £1.9 billion (6.3 percent). The drop in exports was broad-based, affecting both EU and non-EU markets, with shipments to the United States plunging by £0.7 billion (14.5 percent) to their lowest level since February 2022.
Across the second quarter, the total goods and services trade deficit widened by £1.7 billion to £9.2 billion, reflecting a larger rise in imports than in exports. The goods trade deficit grew substantially, up £5.8 billion to £61.1 billion, underscoring persistent challenges in the UK's goods competitiveness.
However, the services sector provided some cushion, with the trade surplus in services widening by £4.1 billion to £51.9 billion, signalling continued strength in the UK's high-value service exports.
Overall, the data points to a growing reliance on services to offset the deep goods trade gap. Still, the sharp fall in exports, particularly to the US, raises concerns over external demand and market resilience. This latest update takes the RPI to 9 and the RPI-P to 9. Meaning that economic activities are within the expectations of the UK economy.
Across the second quarter, the total goods and services trade deficit widened by £1.7 billion to £9.2 billion, reflecting a larger rise in imports than in exports. The goods trade deficit grew substantially, up £5.8 billion to £61.1 billion, underscoring persistent challenges in the UK's goods competitiveness.
However, the services sector provided some cushion, with the trade surplus in services widening by £4.1 billion to £51.9 billion, signalling continued strength in the UK's high-value service exports.
Overall, the data points to a growing reliance on services to offset the deep goods trade gap. Still, the sharp fall in exports, particularly to the US, raises concerns over external demand and market resilience. This latest update takes the RPI to 9 and the RPI-P to 9. Meaning that economic activities are within the expectations of the UK economy.
Definition
The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness. Data are supplied by over 30 sources including several administrative sources, HM Revenue and Customs (HMRC) being the largest.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.
Imports indicate demand for foreign goods and services in the UK. Exports show the demand for UK goods in countries overseas. The pound sterling can be particularly sensitive to changes in the trade deficit run by the United Kingdom, since the trade shortfalls create greater net demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
The UK's trade balance is particularly susceptible to swings in the oil account and so within the overall goods balance, financial markets will normally focus on the balance excluding oil and other erratic items.
Imports indicate demand for foreign goods and services in the UK. Exports show the demand for UK goods in countries overseas. The pound sterling can be particularly sensitive to changes in the trade deficit run by the United Kingdom, since the trade shortfalls create greater net demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
The UK's trade balance is particularly susceptible to swings in the oil account and so within the overall goods balance, financial markets will normally focus on the balance excluding oil and other erratic items.
