Manufacturers reaping the benefits of weaker sterling to push exports

THE UK’s manufacturing sector grew at its fastest rate for more than two years in September, latest figures have shown.

The PMI for the sector rose to 55.4 in September from 53.4 in August – any figure above 50 indicates growth.

Manufacturers have said they are enjoying a resurgence in business prompted by the lower value of sterling following to EU referendum which has made British goods cheaper – although it costs British companies more to buy in goods from abroad.

The latter pushed up firms’ costs at a double-digit annual rate.

Dave Atkinson, Head of Manufacturing at Lloyds Bank Commercial Banking, said: “British manufacturers have used their agility and experience to build momentum during a period of uncertainty, growing their order books in a time when others have put expansion plans on hold.    
 
“The industry has recognised that the export benefits of a weakened pound will not last forever, and manufacturers are actively exploring new market opportunities for British products both at home and overseas.
 
“Delivering sustainable growth with new trade partners has taken on increasing significance in what is an evolving economic landscape, and supporting first-time exporters during this process will be fundamental to the success of the country’s export operations.”
 
Mike Rigby, Head of Manufacturing at Barclays, said the sector would be looking towards next month’s Autumn Statement to see how the government proposed to bolster industry and the UK economy.”

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