Figures that were produced last week by the Office for National Statistics reveal that the United Kingdom’s trade deficit for the month of April was greater than March due to the deteriorating of the manufacturing export. Initially, the projected deficit was believed to be almost be £10 billion; up from the £8.3 billion for the month of March.
Provided that there was an existing trade surplus of £7.1 billion due to the services sector, the figure was later revised on the upward trend due to an omission by the HM revenues and customs which embarrassingly forgot to include the £700 million worth of oil that was exported to the EU.
Many analysts are indicating that the much-needed rebalancing of the economy that was promised to the investors were slowly but surely slipping away. What is even more substantial is the fact that these figures are what were used to employ during the sluggish recovery of the EU.
The problem apparently is although the selling to the EU countries was clearly visible, the purchased goods from which it came were actually goods that deficit was totalled to £5.1 billion in April which was up from £4.9 billion in March.
Until there be additional export to more countries outside the EU, especially the newly emerging economies, the chances on the reliance of the EU is well within reach. The goods deficit with the non-EU countries was nearly at £4 billion in April and something of a disappointment on the gap of £3.1 billion which had been previously forecasted.
It should be noted that the trade deficits did not add anything new and there has been one during the last decade due to the fact that fewer manufacturing goods which recently have been deteriorating in the last two decades.
Surprisingly, the countries with which there are still large deficits include Norway, China, Hong Kong, Germany, Netherlands, Saudi Arabia, U.A.E., Australia and the U.S.
Though the general circumstance is inconsistent, it means that there will be an active engagement in consumer spending which although good for retailers will likely lead to more goods being imported in the long run.
In addition to the diverse mixture is the fact that the pound is still standing strong by around 10 % over the last year which though making imported goods appears to be cheaper, causes exports to become less enticing.
Manufacturing as many consider, is the key sector that is needed to be supported and stimulated. The only problem is the presumed recovery in this vital sector which came after years of continuous decline.
Last week, the HMRC was able to produced figures revealing that the exports from the West Midland was worth £28 and was considered the region with the highest year-on-year growth of approximately 20 %.
This was indeed good news, yet there should be an even greater effort to return to a situation in which the surrounding area is to be recognised as a stronghold of the manufacturing activities in the country.
Central Birmingham was every much as comparable to an industrial city which was thriving on its ability to draw novel ideas which could be made by the rapidly-developing skilled workforce in the multitude of factories and workshops.
The scenario of the emerging suburbs is indicative that a city is well indeed in transition notably revealing with the construction of roads, houses and factories for companies. Though there is now a re-emergence of Birmingham as a region specifically catered to make innovative products, there wouldn’t be much manufacturing in Birmingham in the same as it did more than a hundred years ago.
This is not to say that there shouldn’t be too much expectations that the present leaders should do in order to underpin and support an atmosphere in which latter-day innovators and entrepreneurs would see it as a place where their innovations can from fulfillment which is hoped to be sufficiently produced in order to assist in improving the U.K.’s trade deficit.
Finally, as the latest trade figures make things of real value, it is the only feasible way to reclaim balance to the economy.