Figures have revealed that last month the UK’s trade deficit widened, and at RTA Business we ask what this means if you are looking to sell your business.
RTA Business, the Business Sales Specialists
When you decide it’s time to profit from your hard work and sell your business, RTA Business are here to help. With our expertise, you can be sure that you will find the right buyer for your company.
Therefore, we know how a potential buyer thinks when they’re considering whether to take your business off your hands, and one of their main considerations is the economy. Is the economy strong enough to make sure that when they take over, the firm they’ve bought will grow and make them a profit?
What Is The Trade Deficit?
That’s why the UK’s trade deficit figures are so important to note here. A trade deficit is basically the amount by which a country’s imports exceeds the values of its exports; in other words, they’re paying more than they’re taking in, leaving less funds to devote to economic growth.
It appears that the UK may be paying more out than it’s taking in right now, as the latest figures from the Office of National Statistics (ONS), have revealed that last month, the UK’s trade deficit grew, in no small part, on the back of aircraft imports.
Why Did The Trade Deficit Widen?
Specifically, the ONS revealed that the UK’s goods trade deficit widened to measure just over £9.2 billion. This is rise from the £8.8 billion figure for April, which was famously revised because of an initial miscalculation of oil imports.
So essentially, last month saw the goods deficit widen by a margin of £400 million, and figures have gone on to show this was largely pushed up by aircraft imports; which are notoriously high value and traded fairly infrequently. However, their impact was in part offset by the country’s services sector, which measured a £6.8 billion surplus.
What Does This Mean for You If You Are Looking to Sell Your Business?
So what does this mean for you if you are looking to sell your business? Obviously, the fact that the deficit widened suggests a weaker economy, which could be bad.
However, the fact that aircraft imports are so infrequent, means that this is unlikely to be indicative of larger economic trends, and that it’s unlikely that these figures will dissuade a potential buyer from thinking now is the right time to take your company off your hand!
If you want to learn more or need to speak to a member of the team, please contact the RTA Business Complaints department today.