- Don-Alvin Adegeest |
With the value of the pound soaring and the euro perennially week, British export companies have seen a dip major export markets.
As a result UK factory output fell by 0.5 per cent in July compared with June, according to figures released the Office for National Statistics.
That means production lines, which includes clothing manufacturing, dropped 0.4 per cent.
“July’s industrial production and trade figures highlight that the strength of the pound and weakness in demand in key export markets held back the recovery in the manufacturing sector,” said economist Paul Hollingsworth from Capital Economics.
British exporters have struggled as their biggest market, the Eurozone, has struggled to sustain growth since the financial crisis. However, the Eurozone economy has looked in better shape this year.
The value of UK exports dropped 5.2 per cent in July compared with March. Imports rose 0.6 per cent.