UK Trade deficit continues to narrow.

The U.K. has experienced a reduction in trade deficit for a second month in a row. The Office of National Statistic have released figures today that show that the trade gap in January was 7.5 billion pounds which is 10 million less than December.

Today’s report indicated that the current position of trade may support economic expansion, as is currently being experienced in the US.

In January exports rose to 20 billion pounds, which is the highest for nearly two years, although the value of imports stood at 27 billion, which is similarly the highest over the same period.

Peter Dixon an economist as Commerzbank AG in London said that: “A weak pound will boost exports this year and next which should mean we have much less of a drag from net trade.”

Within the last six months the pound has fallen by 8 percent according to an index devised by the central bank than measures against other currencies on a trade-weighted basis.

Against the euro, the pound traded at 76.48 p as of 10 a.m. today in London after reaching a record low of 77.17 p on March 8, and similar signs can be seen against the dollar where the pound has fallen from its 26 year high and is trading at $2.016.

50 percent of British exports stay within the European Union, and sales have increased faster than imports resulting in the trade deficit reducing by 3.2 billion pounds from 3.4 billion pounds from December.

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