An unexpected fall in UK exports meant January's trade gap widened The UK's trade gap with the rest of the world widened unexpectedly in January to its largest since August 2008.Exports saw their sharpest drop in more than three years, according to the Office for National Statistics (ONS). The UK's trade gap in goods and services widened to £3.8bn, compared with £2.6bn in December. The news came as a disappointment and caused the pound to weaken, dipping 0.4% to 1.10 euros and losing 0.75% against the dollar to below $1.50. The UK's currency has fallen by some 24% against a basket of world currencies since early 2007 - before the global economic crisis. ANALYSIS By Hugh Pym, Chief economics correspondent Blip - or trend? That is often the question that comes up with monthly economic statistics. With a series as volatile as the monthly trade figures, particular care needs to be taken when deducing longer-term trends. On the face of it, a 6% drop in exports in January from December is worrying.[Read more...]