| Actual | Previous | Revised | |
| Balance | £-23.01B | £-18.66B | £-21.08B |
| Imports - M/M | -0.6% | -6.2% | -4.1% |
| Imports - Y/Y | 9.1% | 3.3% | 6.6% |
| Exports - M/M | -6.4% | 7.0% | 5.0% |
| Exports - Y/Y | 9.3% | 11.4% | 9.4% |
Highlights
The UK’s goods trade position weakened considerably in June 2026. Goods imports fell modestly by 0.6 percent, while exports declined much more sharply by 6.4 percent. Consequently, the goods trade deficit widened by £1.9 billion, from £21.1 billion to £23.0 billion.
This deterioration was driven primarily by declining export performance rather than increased dependence on imports. Falls in trade with both EU and non-EU countries suggest that the weakness was geographically widespread, potentially reflecting softer international demand, domestic competitiveness pressures or temporary disruptions in major export industries.
Although lower imports may indicate reduced domestic demand for foreign goods, they were insufficient to offset the substantial loss in export value. The figures therefore suggest that the UK economy is selling less abroad at a considerably faster rate than it is reducing overseas purchases. If sustained, this imbalance could weaken production, employment and overall economic growth.
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.