Brexit BOOST: Manufacturing at 2-year HIGH as experts hail ‘very welcome upward surprise'
BRITAIN's economy has received another post-referendum boost, as manufacturing output in September jumped to its highest level since May 2014.
Activity surprised experts, leaping to 55.4 last month, from 53.3 in August, and a 27-month high, as measured by the Markit's Purchasing Managers Index (PMI).
The soaring output is set to give economy a significant kick in the third quarter, said economists as they lifted growth forecasts higher.
The weaker pound helped new manufacturing orders hit a 11-month high, with export orders at levels not seen since January 2014, the survey showed.
Demand increased from clients in Asia, Europe, the USA and certain emerging markets, according to Markit.
At the same time, domestic also improved, led by consumer goods.
Furthermore, employment growth was at an 11-month high.
Experts described the data as a "very welcome upward surprise".
IHS Global Insight has now reforecast Britain's economic growth up to 0.4 per cent between July and September, and 0.3 per cent for the final quarter.
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Howard Archer, chief UK economist at IHS Global Insight, said: "Sterling’s marked weakening is giving an important lift to foreign demand for UK manufactured goods.
"It is encouraging to see that there was healthy demand for - and production of - investment goods in September, which lifts hopes that UK businesses are still prepared to invest despite the heightened uncertainties since June’s Brexit vote.
"With latest data and surveys largely pointing to resilience in the UK economy, we have recently lifted our estimate of third quarter GDP growth to 0.4 per cent quarter-on-quarter from 0.3 per cent quarter-on-quarter – and the robust September manufacturing survey is supportive to this upgrade.
"We are also lifting our forecast for fourth quarter GDP growth to 0.3 per cent quarter-on-quarter from 0.2 per cent quarter-on-quarter – and this could well prove to be over-cautious."