Economic Upturn of Euro Benefited the British Manufacturers

Reports in the British factories shows huge volume of book orders which are triggered by the sluggish pound after the Brexit referendum plus the robust economy of the euro zone.

According to the survey on business expectations for Q3 in 2017, shows an increase of 34% in output among companies polled by business advisory firms, BDO and EEF which are the manufacturers' body. It presented an expansion from 26% in the past three months.

Based on the report, order books further reached record levels due to higher demand levels from overseas. As 47% of the companies deemed that EU exports grew during the third quarter compared in 2016. Meanwhile, the demand from Asia and the United States also helps negate the relative weaknesses in the UK brought by Brexit.

Moreover, the decline in the pound’s value led to a surge in various economic prices since the EU exit raised costs for imports. This also helped UK products to be more competitive in foreign lands.

It’s been awhile before the exporters gained the benefits. As shown in the report, the demand bolstered by the expansion of economic growth in Europe which weakened the economic performance of UK during the financial disaster until this year.