UK goods-and-services trade deficit widens to £10.4 billion in the third quarter

The UK imported more than it exported by £10.4 billion in the third quarter of 2026, a widening of £6.2 billion from the preceding three months. The official goods-and-services trade figures exclude precious metals, whose volatile movements can obscure the underlying pattern. Imports increased much faster than exports, despite growth in service sales overseas.

The Office for National Statistics reported third-quarter exports of £245.5 billion and imports of £255.9 billion. Exports rose £1.2 billion, or 0.5 percent, while imports rose £7.4 billion, or 3.0 percent. These are seasonally adjusted current-price values, rather than direct measures of the physical volume of goods.

Services offset much of the goods shortfall

The goods deficit widened to £61.5 billion. Goods exports fell 0.4 percent to £106.7 billion, while imports increased 3.5 percent to £168.2 billion. Services generated an estimated £51.1 billion surplus, slightly below the previous quarter, as service imports grew a little more than exports. Combining the two produces the smaller overall trade deficit; the goods gap alone is not the balance for the whole economy.

A £4.4 billion rise in machinery and transport equipment imports from outside the European Union was a major driver. The release identified cars from China and aircraft from the United States among the contributors. Goods exports to the EU fell £2.3 billion, partly because of lower fuel and machinery exports, while exports to non-EU markets increased £1.9 billion.

September alone showed goods exports up 6.5 percent and imports up 6.9 percent from August. That monthly improvement in exports does not contradict a weaker quarterly balance. After inflation was removed, the quarterly total trade deficit widened to £9.9 billion, a different measure from the £10.4 billion current-price figure. Services estimates use forecast survey data at this early stage and can be revised. The release concerns trade, not the wider current account, which also includes income and transfers.