UK factories enjoy best week for new orders since 1988

British factories received more orders this month than any other in the last three decades, according to an industry survey.

The report from the Confederation of British industry adds to growing evidence that the fall in the value of the pound since last years Brexit vote is helping manufacturers.

Best week for UK factories in 29 years. Source: Google

The CBI’s monthly industry health check showed massive growth in both total and export orders, resulting in higher factory output as firms expect the trend to continue over the next three months.

While manufacturing only makes up 10% of the UK economy, the strength of the CBI report will increase the chances of growth picking up after a slow year so far.

Firms are still dealing with an increase in costs but the CBI said these were improving since the 15% drop in the value of sterling earlier this year pushed up the price of imported materials and fuel.

Anna Leach, the CBIs’ head of economic intelligence, said: “UK manufacturers are once more performing strongly as global growth and the lower level of sterling continue to support demand.

“Output growth has picked up again, and export order books match the highest in more than 20 years.”

“Nonetheless, uncertainty continues to hold back investment and cost pressures remain strong.”

The news comes ahead of tomorrow’s chancellor’s budget and will provide a much needed boost to his position after his widely criticised first budget.

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15% drop in British Pound. Source: Google


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