The November 2025 trade figures showed that on a monthly basis, goods trade showed tentative improvement, with exports rising by £0.6 billion (1.9 percent after 2.1 percent in the previous month), reflecting stronger demand from both EU and non-EU partners. This export growth, however, was matched by an equivalent fall in the rate of rise in imports (0.2 percent after 6.8 percent in the previous month), driven mainly by reduced purchases from non-EU countries.

Such a pattern suggests some short-term rebalancing in goods trade, potentially linked to weaker domestic demand or price effects. Beneath this headline stability, bilateral trade with the United States weakened notably. Sharp declines in both exports and imports, particularly in precious metals, indicate volatility rather than a structural shift, but they nonetheless dampened overall trade momentum.

The trade balance in November remains in negative territory at £23.71 billion from a revised £24.17 billion in the previous month. This emphasizes the UK's persistent reliance on imported goods. In contrast, the services sector remained a key stabiliser, reinforcing its central role in offsetting structural weaknesses in goods trade.

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.

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.