Manufacturing at 30-year high

MANUFACTURING demand has surged to its highest level in 30 years thanks to the Brexit fall in the pound.

A Confederation of British Industry survey found order books were more buoyant than at any time since 1988, when coal and steel were a major part of the national economy.

Global growth is partly responsible but the sector’s fortunes have been helped by sterling’s weakness since the EU referendum.

The news came amid growing speculation that Britain could be set for a rise in interest rates – with one bank saying the Bank of England could act as soon as August.

The CBI figures suggest manufacturing will continue to grow for the immediate future – but they did not stop Chancellor Philip Hammond from calling for a four-year transitional deal with the EU after Brexit to ‘get businesses investing in the UK again’. Tory MP Nadine Dorries said: ‘Mr Hammond has always been a bit of a gloomy Chancellor.’

EEYORE is back. For months after the EU referendum, Philip Hammond was like the glum donkey for whom the whole world looked bad.

But then, after his predecessor’s pessimistic outlook for Britain’s economy was proven so very wrong, the Chancellor – for a brief period at least – discovered some optimism.

Sadly that has all passed and, saved from the sack by the Conservatives’ disastrous election defeat, he has reverted to type, claiming businesses are not investing because they fear a ‘cliff edge’ Brexit.

There may be choppy waters ahead but the economy remains robust. Indeed, a CBI survey found manufacturers’ order books are at their best level for nearly 30 years.

So is it too much to ask Mr Hammond to stop talking Britain down?