UK manufacturing export orders highest in 2 years after Brexit vote

Updated: 2016-08-23 18:35


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UK manufacturing export orders highest in 2 years after Brexit vote

Shoppers cross the road in Oxford Street, in London, Britain August 14, 2016. [Photo/Agencies]

LONDON - Orders for British manufacturing exports rose to their highest level in two years in August helped by the Brexit-induced fall in sterling but the weaker pound also pushed up price expectations to their highest in over a year, a survey showed.

An index measuring overall factory orders dipped slightly in August to -5 from -4 in July but export orders improved to -6 from -22, their highest since August 2014, the survey by the Confederation of British Industry showed.

A measure of output expectations for the three months ahead rose to +11 from +6 in July.

The British pound fell sharply after Britain's vote to leave the European Union.

The CBI said average prices that manufacturers expected to charge over the next three months rose to +8 in August from +5 in July, their highest since February 2015.

"It's good to see manufacturing output growth coming in stronger than expected, and some signs that the fall in sterling is helping to bolster export orders," Anna Leach, CBI Head of Economic Analysis and Surveys, said.

"But the pound's weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices."