Exports enjoy 20-year boom

Business is booming at Britain’s factories as manufacturers cash in on the fall in the pound following the Brexit vote.

More companies are seeing output and orders increase than at any time since 1995 as exports go from ‘strength to strength’, according to a report by manufacturing group eeF and accountants BDO.

Lee Hopley, chief economist at eeF, said: ‘ Manufacturers appear to have taken the recent political upheaval in their stride and are taking advantage of growing world markets to make hay while the sun shines.’ in a further boost for the economy, separate figures from the British Retail Consortium showed retail sales were 2.4pc higher last month than in August last year – the strongest performance since easter.

The upbeat reports come just days after a top Bank of england official, Michael saunders, suggested that the slowdown in the economy in the first half of this year may turn out to be an illusion, with figures showing the economy grew by just 0.2pc in the first quarter and 0.3pc in the second quarter likely to be revised up. But a third report, out yesterday, showed the construction industry was suffering, as it had its worst month for a year in August.

Research group iHs Markit said its index of activity in the construction sector, where scores above 50 show growth, fell from 51.9 in July to 51.1.

‘The sector hit a roadblock this month,’ said Duncan Brock, a director at the Chartered institute of Procurement and supply, which compiled the figures with iHs Markit.