Exporters may face a tough 2007
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The UK's trade deficit rose in November to £4.7bn from £4.1bn as imports rose, official figures have shown.
While the surplus on services was unchanged at £2.5bn, the deficit in goods trade grew more than expected to £7.2bn from £6.6bn the month before.
The deficit in goods trade with non-EU countries hit a record high after he level of exports stagnated.
Analysts said heavy distortion from VAT fraud meant the trade figures should be treated cautiously.
However, trade associated with so-called carousel fraud slipped to about £200m in the month - the lowest level of the year, the Office for National Statistics (ONS) said.
Healthy EU
Concerns about the strength of the US economy, which is experiencing a slowdown in manufacturing and house sales, has led to weakness in the dollar.
This, in turn, has affected UK firms selling goods there, making their goods more expensive for consumers and importers.
But the strength of the pound and the slower US growth have led to the goods trade gap with non-EU countries growing to £4.6bn from £3.9bn a month before - far greater than analysts had predicted
British exports to the EU - where currency rates are more favourable - actually rose 1.8% in November while imports rose 3.1% - suggesting continuing consumer demand within the UK.
"Exports to the US have lost significant momentum in recent months," said Howard Archer, an analyst at Global Insight.
"There are some worrying clouds on the horizon for UK exporters. While the eurozone is still enjoying healthy economic growth, there is a serious risk that global growth will be softer in 2007."
The latest trade figures revealed another sharp fall in the value of trade associated with VAT "carousel" fraud.
This dropped in November to £200m, from £300m in October and far below the peak of £5.4bn recorded in March.
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There are some worrying clouds on the horizon for UK exporters
