Since June’s Brexit vote Britain has performed far better than economists had predicted. The manufacturing sector saw huge export and domestic demand in December 2016 according to a survey conducted. Even though the manufacturing PMI (Purchasing Managers’ Index) saw an increase in the domestic and export order, this has added cost pressures to the manufacturing sectors. The pound has drastically fallen and companies blame the weaker pound for the soaring manufacturing cost.
Source: independent.co.uk
The industrial growth in Britain was generated by increase in investment and intermediate goods sectors which contributed higher than the consumer demand. The additional export demand comes from the US, India, China and EU. Rob Dobson, senior economist at IHS Markit said,“The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround, while the domestic market has remained a strong contributor to new business wins.”
Britain’s economy is expected to expand by 2 percent in 2017. The Brexit vote had left many to predict the downfall of Britain’s economy. But this has only stimulated higher growth. Manufacturers hired more staff since 2015 to meet the excess demand. UK manufacturing PMI showed a 30 month high of 56.1 in December.
Carolyn Fairborn, CBI said,”Raising productivity across all parts of the UK should be the single most important domestic goal of the next five years.” UK is induced to hike their industrial growth and overcome the economic gulfs in the different parts of UK.
The final quarter of 2016 saw massive increase in manufacturing PMI and UK aims on attaining a balanced GDP in the coming quarters. Manufacturing sector has bolstered the bullish industrial growth in Britain.
