Exporters in the industry will welcome statistics showing a two-year peak in orders for British manufacturing exports in August, following a Brexit-induced fall in sterling.
The Confederation of British Industry said its measure of overall factory orders fell slightly in August to -5, but still beat a median forecast of -9 in a Reuters poll of economists, and export orders improved to -6 from -22, their highest since August 2014.
Manufacturers were optimistic as output expectations for the next three months rose to +11 from +6 in July.
“the pound’s weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices.”
Anna Leach, CBI head of economic analysis and surveys, said that while the fall in sterling caused stronger-than-expected manufacturing output growth, “the pound’s weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices.”
Indeed rising inflation will hurt the industry as customers find themselves with less disposable income, however this could be outweighed by an increase in foreign visitors for operators, and an increase in exports for manufacturers.