The UK experienced an unwelcome fall in exports in the latest figures reported by the ONS. The trade gap widened as a result.

Perhaps the more surprising thing is that exports had been rising at all. Europe, the UK's biggest trading partner, has been experiencing such problems it would not have been a shock if they had bought less.

The concern for Britain is that, in a time when the UK desperately needs growth, a rise in net exports is an important factor in increasing Aggregate Demand. These figures mean that net exports is effectively reducing AD and so will reduce growth not boost it.

On the bright side imports have risen slightly. While bad for net exports now this can indicate returning consumer confidence and possibly improving disposable income.

The Guardian reports the trade situation here