Weaker pound gives shot in arm to British factories
Manufacturers are enjoying their strongest pipeline of orders in three decades as the Brexit-battered pound helps boost demand for 'Made in Britain' products.
The CBI’s latest snapshot shows that the balance of companies reporting that total order books were above normal leapt from +9 in May to +16 in June – the highest reading since August 1988. It revealed that export orders rose to a 22-year high.
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CBI chief economist Rain Newton-Smith said: “Britain’s manufacturers are continuing to see demand for ‘Made in Britain’ goods rise with the temperature.
“Total and export order books are at highs not seen for decades, and output growth remains robust.”
She added: “To build the right future for Britain’s economy, manufacturers and workers, the government must put the economy first as it negotiates the country’s departure from the EU.”
However, the survey also pointed to continuing price pressures, with manufacturers continuing to expect a sharp rise in average selling prices.