Share:
POST
TWEET
SHARE
SHARE
EMAIL

Weak sterling post-Brexit vote boost manufacturing exports

By Dan Wilson September 1, 2016 - 10:42 pm

The latest numbers in the Markit/CIPS purchasing managers’ index (PMI) suggest that the weak sterling rates since the June 23rd Brexit referendum result has been good news for exports.

The news has provided a boost for sterling although does augur inflationary worries and has meant increased costs for business.

The PMI increased to 53.3 in August up on July’s figure of 48.3. Apparently a figure above 50 indicates expansion.

As economist Rob Dobson at IHS Markit said: “The August PMI data indicate a solid rebound in the performance of the UK manufacturing sector from the steep downturn that followed the EU referendum. The domestic market showed a marked recovery, especially for consumer products, while the recent depreciation of sterling drove higher inflows of new business from the US, Europe, Scandinavia, Middle East and Asia.”

The survey mirrors what many ecommerce sellers have been reporting: a weak rate for sterling is good news for exports but costs on importing supplies does also inevitably increase.

Comments are closed.

Recent Comments

7 hours ago
northumbrian: asal cliste penantic...
8 hours ago
PGC: I used to live and breath ebay as a non business seller. Buy stuff, use it,...
9 hours ago
Andy Cornwall: If you sell on marketplaces you need 24/7 cover, Amazon has expected you to reply...
10 hours ago
timo: YOU'RE clearly an English speaker, so getting it wrong 3 times in one short post...
10 hours ago
nobody: So, from a victim's point of view, posteo.de is even worse than the ransom-ware crackers,...