UK Trade Balance Swings to Deficit

In February 2025, the UK’s trade balance reflected a deficit of £1.96 billion, marking a shift from the revised £0.30 billion surplus recorded in January. Export levels increased marginally, up 0.2% month-over-month, reaching a 27-month high of £76.24 billion. Concurrently, imports surged by 3.2%, reaching an eight-month peak of £78.19 billion.

When examining goods exports, there was a slight rise of 0.1%. Exports to non-EU nations remained consistent; while there was a decline of £0.6 billion in material manufactures and £0.3 billion in miscellaneous manufactures, these were counterbalanced by a £0.3 billion increase in exports of machinery, transport equipment, and fuels. Exports to EU countries also remained steady, where a £0.6 billion decrease in fuel exports was partially offset by a £0.3 billion rise in machinery and transport equipment exports.

On the import side, goods saw an upswing of 5.2%. Imports from non-EU countries rose by 5.8%, notably due to an increase in aircraft imports from the United States. Imports from the EU experienced a 6.1% hike, largely driven by increased imports of machinery and transport equipment, with significant contributions coming from cars imported from Germany, Spain, and Belgium.

The material has been provided by InstaForex Company – www.instaforex.com