City performs strongly as its exports keep soaring

FINANCIAL services boosted the economy in the third quarter with soaring exports, the Office for National Statistics confirmed yesterday.

Insurance and financial services recorded a trade surplus of £10.3bn between July and September, up from £9.1bn in the previous quarter, underlining the importance of the sector to any economic recovery.

Imports rose slightly to £3.9bn, whilst exports soared 9.2 per cent on the quarter to £14.3bn

“The UK trade surplus in 2010 of £35.7bn in financial services and £7.4bn in professional services exceeded that of all other sectors in the UK,” said TheCityUK. “These trade surpluses help offset the large trade deficits in goods of £99bn and travel of £11bn.”

Communications hit a record surplus, of £540m in quarter three 2011.

However, the overall current account deficit hit £15.2bn in the three-month period, up from £12.5bn in the same quarter of 2010 and the highest level since records began.

Such a deficit accounts for four per cent of GDP – the highest proportion since the second quarter of 1990.

The deficit in oil hit a new record, rising from £2.2bn to £4.1bn on the quarter, led by falling exports.