2018-01-12 13:36:11 UTC
Cheap pound drives best factory growth in seven years
Factories are growing at the fastest pace in almost seven years after a
solid three months to November that beat all forecasts and put Britain
on track to start 2018 on a firm footing.
To help them out a bit, it's not just the currency. British exports are
being helped by the twin benefits of the low pound and global growth,
both of which are helping. On the currency, there's a case to be made
that the pound has long been overvalued due to governments favouring
financial markets, and that has caused the UK's financial systems and
headline wealth figures look good at the expense of substance.
The Brexit vote, rather than causing a catastrophic fall, took the fake
top of the pound's value (and maybe a bit more), and that is allowing
more substantial value-add industries to begin to re-establish
themselves. There is a long way to go as production capacity takes time
to re-form. But it's a good start.
Now, if only there were some way to keep the pound low....