Weak pound fuels robust exports

THE weak pound boosted exports with May another positive month for manufacturers.

Demand for British goods is on the rise despite the tough economic climate.

The Chartered Institute of purchasing and Supply (CIPS) said its index of activity, carried out by Markit, was stable at 58 in May. Under the data anything about 50 represents growth.

That was the same reading as the near 16-year high recorded in April and the eighth-consecutive month of expansion.

CIPS chief executive David Noble said: "The strength of recovery has taken everyone by surprise. We can't forget this has been driven by the weak sterling exchange rate bolstering export demand.

"Problems in countries such as Greece and Spain have strengthened the pound against the euro recently and could also have a severe impact on the eurozone economy.

"Given the euro countries are Britain's biggest trading partners, any double-dip recession there would undoubtedly damage the UK manufacturing sector.”