When services were taken into account, the deficit for the quarter stood £4.9 billion, considerably smaller than the £7.5 billion difference recorded in the first three months of the year.

Although the deficit widened in June, its significant narrowing in April and May still allow for trade to have made a positive contribution to economic growth during the second quarter, the ONS said.

Year-on-year, industrial production growth slowed to 0.6 percent in June from 2.5 percent in May, and manufacturing output growth eased to 0.1 percent from 3.0 percent.

The fall was balanced out by manufacturing output posting an increase of 0.5%, a little higher than estimates of 0.4%.

The total trade deficit in the second quarter fell to 4.182 billion pounds from 7.496 billion pounds, which was the smallest deficit since the second quarter of 2011.

“The geographic breakdown of exports offers some confirmation that exports to the Eurozone are being constrained by the sizeable appreciation in the value of the pound against the euro”.

Britain’s trade deficit with the rest of the world narrowed markedly in the second quarter and looks set to boost economic growth, although analysts warned that the improvement may not last. The Bank of England warned Thursday that the pound’s strength will hold back exports and keep inflation subdued in the near term by depressing import prices. Exports in services fell by £0.1 billion in Q2 whilst imports rose £0.2 billion. France, the Netherlands, the Irish Republic and China are the next biggest export markets.

The greatest barriers to exporting among services firms – a sector in which Britain remains a net exporter – were differences in regulations and standards, as well as language or cultural differences, the BCC survey found. “That means that the data for the latest months are inevitably uncertain”, it said.