UK Trade Deficit Narrows but Outlook Dims Amid Eurozone Crisis

Britain's trade deficit slimmed in September to £2.7bn, reported the Office for National Statistics (ONS), down from the previous months £4.3bn.

Trading outlook for the UK economy looks bleak, with several major markets slowing, in crisis, or facing an uncertain future.

The service sector, which accounts for around three quarters of the whole economy, continues to perform well in world trade.

However, goods exports continue to be far outpaced by imports, despite an improving performance across the month.

Exports of services were £15.6bn in September, while imports were £9.9bn.

Goods exports grew by 1.1 percent to £24.9bn, as imports fell by 3.9 percent to £33.2bn.

Leaders in the eurozone, which is one of the UK's biggest trading partners, are still unable to bring their sovereign debt crisis to an end.

This uncertainty has drained confidence across world markets, while the downturn in the area has dampened demand.

America's looming "fiscal cliff" of tax rises and public spending cuts in January, if no disaster-averting deal is reached between the Republican-controlled Congress and Democrat President Obama, still poses a threat to world economic stability with the inevitable slump it would induce.

Asian economies have also experienced slowing growth in recent months.

This has been bad news for the UK, as Chancellor George Osborne is eyeing far east exports as a potential driver of growth for the economy here.