UK trade gap widens
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• The value of Britain's heavy truck imports rocketed by 50% to £354 million in the first five months of this year, exactly in line with the country's overall 50% motor industry trade deficit.
According to the latest statistics from the Society of Motor Manufacturers and Traders, this leaves Britain £2.36 billion in the red. Light van imports in the same period rose by 27%.
Truck exporters continue to struggle and the number of heavy lorries sold out of the UK so far this year has dropped by 5.2%. The overall value of truck exports remains at only one third the value of 476 our imports into the UK.
The parts and accessories market showed a deficit of £399 million in the first five months of this year; a figure some £55 million worse than last year.
This gloomy picture can be attributed in part to domestic supply constraints for UKbased manufacturers, says the SMMT. Both Bedford and Peugeot Talbot have boosted output at their British plants, using supplies and equipment sourced abroad.
Geoffrey Felling, the SMMT's chief economist, says that the trade gap is not expected to improve much this year, but an anticipated downturn in demand could ease supply problems and help British manufacturers to regain lost market share.