Trade gap boost

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Official figures today showed exports rose 2.5% to £18.9 billion in February, while imports fell 0.5% to £26.2 billion.

It followed a dramatic slump in sterling, which has lost nearly a third of its value in the past year, making UK goods more attractive to overseas buyers.

Exports to the EU were up £400 million although those to Germany, France and Italy fell as recession in Europe hit demand. The overall trade gap shrank by £500 million to £7.3 billion.

Separate figures showed the price of goods leaving UK factories rose by just 0.1% between February and March and by 2% over the year, the slowest rate of annual increase since July 2007.