The deficit shrank to £7.8 billion ($12.2 billion, 8.9 billion euros), compared with a revised shortfall of £8.2 billion in July, the Office for National Statistics (ONS) said in a statement.

Analysts had forecast a deficit of £8.8 billion for August, according to analysts polled by Dow Jones Newswires.

Exports rose 0.6 percent in July to a record £25.5 billion, while imports fell 0.7 percent to £33.3 billion, the ONS added.