Economic Buzz: UK trade deficit narrows in services-led improvement despite weaker goods exports

According to the Office for National Statistics, the value of UK goods imports rose by ?2.3 billion (4.7%) in February 2026, driven by increases from both EU and non-EU countries.

Goods exports fell by ?0.5 billion (1.5%), with declines seen in shipments to both EU and non-EU markets. However, exports to the United States rose by ?0.5 billion (11.3%), while imports from the US fell by ?0.4 billion (8.2%).

In the three months to February 2026, the total trade in goods and services deficit narrowed slightly by ?0.3 billion to ?2.8 billion compared with the three months to November 2025.

Over the same period, the goods trade deficit widened by ?1.0 billion to ?57.1 billion, while the services surplus increased by ?1.3 billion to ?54.2 billion, helping offset the weakness in goods trade.

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