The United Kingdom's trade deficit in goods and services narrowed significantly by £7.5 billion, reaching just £1.0 billion in the three months to February, according to figures released by the Office for National Statistics on Friday. This marks the smallest deficit since the three months to July 2021.

The shift came as exports surged by £10.5 billion while imports rose by only £3.1 billion. The goods trade deficit fell by £3.5 billion to £55.0 billion, while the services trade surplus expanded by an estimated £4.0 billion to £53.9 billion. The ONS noted this improvement followed stronger goods exports to non-EU countries and growing services exports across sectors source.

February's report highlights continuing momentum in UK exports, particularly to the United States, which saw their highest levels since November 2022. The data, however, predates new tariffs announced by President Donald Trump on April 2 background, and future impacts on trade flows remain uncertain.