The UK's trade deficit with the rest of the world widened by more than expected during June to £4.5bn, official figures showed yesterday.

Disappointing business with countries outside the European Union lay behind the increase with the value of non-EU exports down 13 per cent during the period.

Economists had been looking for a global trade gap of £4 billion after the deficit figure widened significantly to £4.1 billion in May.

The breakdown of the figures from the Office for National Statistics (ONS) shows £2.7 billion of the deficit stemmed from non-EU business - up from £2.3 billion in May - while the EU balance was marginally weaker at £1.8 billion.

Total exports of goods fell more than five per cent to £14.4 billion in June as imports of goods also fell two per cent to £18.9 billion, the ONS added.