The pound rose against the US dollar on Friday after data showed that the UK’s trade deficit in goods and services narrowed in the fourth quarter and industrial output rose more than expected.
Figures from the Office for National Statistics showed that in the final three months of 2016, the trade deficit narrowed to £8.6bn, down £5.6bn from the previous quarter, helped by an increase in exports to countries outside the European Union.
The ONS said that exports of goods to non-EU countries increased by £1.1bn in December.
The pound has suffered a steep fall since the UK in June last year voted to leave the EU and Friday’s figures could stoke speculation that sterling’s slump may be starting to sweeten the appeal of British goods to foreign buyers.
"Exports of goods increased by 10.4% quarter-on-quarter, whereas imports of goods increased by less (0.9%) during the same period," the ONS said.
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