Trade gap widens on US setback

BRITAIN'S trade gap ballooned in June to its widest for seven months as exports to the US dried up.

In a sign that America's economy remains weak, British exports to non-European Union countries plunged by 13% on the previous month, the US accounting for about a quarter of the drop.

The fall drove the trade in goods deficit to £4.5bn, the biggest shortfall since last November.

But the Office for National Statistics said computer glitches at Customs and Excise meant non-EU exports had probably been underestimated.