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Weak pound boosts exports

25th Jan 17 2:37 pm

How has the fall in the stirling helped?

Manufacturers are reeking the benefits of the falling pound as they see a surge in exports, however eventually more expensive imports will push up prices through their impact on business costs.

Philip Hammond, warned last week that the rising inflation will mean slower growth in 2017 but the Confederation of British Industry (CBI) industrial trends survey has found that manufacturers are becoming more optimistic when it comes to exports.

The poll was completed on 461 different manufacturers, it found that domestic orders rose at its fastest pace since mid-2014 in the three months leading to January 2017.

Companies are confident of a rise in overseas orders over the coming months.

Rain Newton-Smith, the CBI chief economist, said: “UK manufacturers are firing on all cylinders right now, with domestic orders up and optimism rising at the fastest pace in two years.”

“The weaker pound is driving export optimism for the year ahead, but is having a detrimental impact on costs for firms and ultimately for consumers.”

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