Exports soar as pound falls

MANUFACTURERS have been given a boost by the fall in the pound as exports of British goods soar, official figures showed yesterday.

Export volumes rose by 8.7 per cent over the three months to January, the strongest increase in more than a decade.

In a sign that Brexit Britain faces a bright future, the report showed UK firms are becoming less reliant on the EU for trade.

While sales of British-made goods to the EU rose 6.7 per cent to £39.2billion over the three months, exports to the rest of the world jumped 13 per cent to £44.6billion.

And the Office for National Statistics separately reported that factory output rose 2.1 per cent between November and January – its best three-month period since 2010.

International Trade Secretary Liam Fox said the figures showed ‘our economy is buoyant and countries across the world want what the UK has to offer’.

Chris Williamson, of research group IHS Markit, said: ‘UK manufacturers have been benefiting from exports being boosted by the fall in the value of the pound since last summer’s Brexit vote.’

The pound has fallen 18 per cent against the dollar and 12 per cent against the euro since the referendum last June.

The ONS said sterling’s value against currencies around the world was 13.1 per cent lower in January this year than January last year. Although the slide in the pound poses a threat to family finances, by pushing up prices as the cost of imports rises, it has also made British goods cheaper and more attractive for overseas buyers.

Experts said the weakness of sterling could help the economy become less reliant on household spending for growth.

Ruth Gregory, of Capital Economics, said the ‘deluge of UK economic data suggests that the pound’s post-referendum slide is helping growth to become more balanced’.

Separate figures from the National Institute of Economic and Social Research showed the economy has continued to grow strongly since the start of the year.

The report said economic output increased by 0.6 per cent in the three months to the end of February – undermining warnings of a slowdown as Theresa May prepares to trigger Article 50.