Britain's official trade deficit hits record level

LONDON: Britain's trade-in-goods deficit hit a record high level of 8.7 billion pounds (10.5 billion euros, $13.4 billion) in July, official data showed on Thursday.

The deficit, which was revised up to 7.5 billion pounds in June, ballooned in July as imports rose and exports fell, data from the Office of National Statistics showed.

"The good news is that stronger imports suggest domestic demand picked up at the start of the third quarter," said Barclays Capital analyst Simon Hayes.

"This would be consistent with the respectable expansions reported in manufacturing output and retail spending this week.

"The bad news is that the long-awaited surge in exports on the back of the more competitive pound has still to materialise," he added.