Economic Buzz: UK trade deficit narrows as goods exports rise in January 2026

The United Kingdom saw a slight decline in the value of goods imports in January 2026, according to data released by the Office for National Statistics (ONS). Goods imports fell by ?0.3 billion, or 0.6%, during the month. The drop was mainly due to lower imports from non-EU countries, although this was partly offset by higher imports from the European Union.

At the same time, the value of goods exports increased significantly. Exports rose by ?2.0 billion, or 6.7%, in January 2026, supported by stronger shipments to both EU and non-EU markets.

Trade with the United States showed mixed trends. Exports of goods to the U.S. declined by ?0.5 billion, representing a fall of 11.3%. However, imports from the U.S. increased by ?0.6 billion, or 12.4%, during the same period.

Looking at the broader picture, the UK?s overall trade deficit in goods and services narrowed in recent months. In the three months to January 2026, the total trade deficit reduced by ?5.1 billion to ?1.8 billion compared with the previous three-month period ending in October 2025.

During the same period, the trade deficit in goods narrowed by ?3.1 billion to ?56.6 billion. Meanwhile, the trade surplus in services is estimated to have increased by ?2.0 billion, reaching ?54.8 billion.

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