Europe’s firms struggle while the UK grows

BRITISH businesses are faring better than their European rivals four months after the Brexit vote, latest figures show.

Research group IHS Markit said its index of private sector activity in the eurozone – where 50 is the cut off between growth and decline – edged up from 52.6 in September to 53.3 in October.

But that was still behind the score of 54.6 racked up in Britain as manufacturers benefited from the weak pound, consumer spending remained strong and housebuilding picked up.

The Bank of England this week admitted it was wrong to be so gloomy about the impact of the June Brexit vote on the economy.

It raised its growth forecasts for next year from 0.8pc to 1.4pc in its biggest ever upgrade to the outlook. But it warned that while the fall in the pound has helped exporters it will also lead to rising prices as the higher cost of imports pushes up inflation.

Chris Williamson, chief business economist at IHS Markit, said: ‘Further signs that the UK economy is gaining growth momentum is marred by news that inflationary pressures are rising rapidly.’

Businesses in Germany fared the best in Europe, clocking up a score of 55.1, while France managed 51.6.