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Recovery fear as trade gap grows

The UK’s deficit on trade in goods with the rest of the world jumped unexpectedly to £8 billion in January, from £7bn in December, raising further concerns over the sustainability of the fledgling recovery.

The widening of the deficit to the worst monthly shortfall since August 2008 was revealed yesterday in data from the Office for National Statistics, which showed a tumble in UK exports from £20.9bn to £19.5bn.