UK exports hit record monthly high as trade gap narrows
The improved performance was driven by strong sales to non-EU countries.
The UK's trade gap narrowed to £9.7bn in October after exports rose to a record monthly high.
Figures published by the Office for National Statistics (ONS) showed the goods deficit - the gap between exports and imports - narrowed by £4.1bn in October from £13.8bn in September.
Exports increased £2.1bn to £26.8bn and imports dropped £2bn to £36.5bn.
When services are included, the trade gap narrowed by £3.8bn to £2bn in October as exports increased by £2bn and imports dropped by £1.8bn.
The brighter picture for the UK's trade deficit was driven by strong goods exports to non-EU countries, which jumped to a new high of £14.4bn, while exports of goods to non-EU countries came in at £12.4bn.
ONS statistician Hannah Finselbach said there was only "limited evidence" a post-referendum drop in the value of the pound had shifted UK exports in an upwards direction.
Howard Archer, chief UK and European economist at IHS Global Insight, said: "The total trade deficit narrowed substantially to a five-month low of £2bn in October after widening to £5.8bn in September from £5.4bn in August and £3.6bn in July.
"Exports likely increasingly benefited in October from the weakened pound lifting foreign demand for UK good and services.
"The hope for the UK economy going forward is that the substantial overall weakening of the pound since the UK voted to leave the European Union in June's referendum will increasingly feed through to boost foreign demand for UK goods and services.
"This is all the more important given the weakening prospects for domestic demand due to likely deteriorating consumer fundamentals and increased uncertainty when the UK starts the Brexit process by triggering Article 50."
Archer said the narrowing of the trade deficit and October's 4.6% monthly rise in exports raised hopes that net trade would deliver a shot in the arm to gross domestic product (GDP) in quarter four.
Despite shrinking month-on-month, the total trade deficit in goods and services widened by £4.7bn to £13.2bn in the three months to October as exports ticked up £1.6bn but imports soared by £7.7bn.
The Bank of England predicts inflation will nearly treble over the next two years, rising to 2.7% for 2017 and 2018.
The trade update comes after ONS figures showed output in Britain's manufacturing sector unexpectedly slumped 0.9% in October as a sharp drop in pharmaceutical production dragged on the industry,
Industrial production also plunged below expectations, dropping for the third month on the bounce to a decline of 1.3% in October in contrast to September.
The UK's construction industry also defied predictions in October, with output falling 0.6% month on month, compared with economist estimates of a 0.3% rise.