Boost for UK factories and... berries?

london — British factory orders have hit their highest level in nearly 30 years, according to a monthly Confederation of British Industry survey which might encourage Bank of England policymakers who favour an interest rate hike.

The CBI said its factory order book balance jumped to +16 in June, its highest level since 1988. Economists taking part in a Reuters poll had expected a weaker reading of plus-seven compared with plus-nine in May.

Export order growth was its strongest in 22 years, the CBI said, helped by the fall in the value of the pound that was triggered by last year’s Brexit vote.

The strong performance by manufacturers will be noted by the BoE, where three members of the eight-strong Monetary Policy Committee last week voted to raise rates, citing among other factors a pick-up in exports and investment which could help to offset a squeeze in spending for domestic consumers. Meanwhile, strawberries, a much-loved treat eaten every year at the Wimbledon tennis championships, could end up costing Britons a lot more if Brexit causes a shortage of seasonal workers from overseas.

Strawberry and raspberry prices will jump 35 per cent to 50 per cent if British growers lose access to summer workers, almost all of whom come from other EU nations, according to a report commissioned by industry group British Summer Fruits. That would cut UK fruit output and mean imports would be needed to make up for the shortfall.

“If access to seasonal workers cannot be ensured, we could see fruit being left unpicked in fields or growers moving their operations to countries with a ready supply of labour,” British Summer Fruits, which represents 97 per cent of all berries supplied to UK supermarkets, said. — Reuters/Bloomberg