British exports suffered a surprise slump in November as global recession bit deeper, undermining demand overseas for UK-made goods despite the pound’s sharp slide.

The unexpected plunge in exports dealt a heavy blow to hopes that the 18 per cent fall in sterling’s overall value in the past year would pave the way for Britain to trade its way out of some of its present economic troubles.

Despite the boost to competitiveness as the pound’s decline makes UK goods and services cheaper abroad, exports succumbed to a near-collapse.

The value of British goods sold abroad tumbled by 5.8 per cent in November alone, pushing the trade deficit on goods to a record high of £8.3 billion.

This marked the biggest trade gap since records began in 1697. Gauged as a proportion of GDP, the deficit hit almost 7 per cent, the highest since 1974.

Britain’s trade performance was even worse based on detailed figures for the volume of goods sold, which strip out the effect of price changes.

Export volumes sank by 6.8 per cent in November and by a startling 10.9 per cent year-on-year in November, excluding oil and items such as aircraft and precious stones, trade in which is highly erratic.

“The overall weakening in the pound is being countered increasingly by deteriorating domestic demand in key overseas markets,” Howard Archer, of IHS Global Insight, said.

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