Activity in Britain’s factories hit a 10-month high in August, with the weaker pound helping to drive up export orders.
The strong results in the monthly survey of purchasing managers reinforces the impression that after the initial shock of the UK’s vote to leave the EU, day-to-day economic activity is carrying on much as before.
Lee Hopley, chief economist at industry organisation EEF, said that manufacturers “appear to have their mojo back”.
Sterling jumped 1 per cent to a one-month high against the euro after the survey was published, and the pound traded above $1.32.
Rob Dobson, senior economist at Markit, which publishes the regular PMI surveys, said companies reported that work postponed during July had been restarted, after manufacturers and clients “started to regain a sense of returning to business as usual”.
In the aftermath of the vote, manufacturing PMI fell to levels normally associated with contraction.
Martin Weale, who stepped down from the Bank of England’s Monetary Policy Committee during the summer, told the FT in July, that the weakness in the PMI surveys — which had signalled business activity dropping to its lowest level since spring 2009 — was one of the clinching factors in his decision to back a stimulus package.
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