Mixed signals for Brexit-bound UK economy
Factories benefit from the weaker pound, but consumers remain cautious
London — Britain’s factories have started 2017 strongly but consumers are turning more cautious about borrowing to spend, according to data which suggested the economy will slow after defying the Brexit shock in 2016. The pound’s slump after June’s vote to leave the European Union (EU) helped demand for British exports, but it is unlikely to outweigh the hit to households as the cost of imports rises. The picture of Britain’s economy given by a monthly survey of the manufacturing sector and separate Bank of England data on borrowing hinted at a slight shift in the drivers of the country’s surprisingly strong growth since the referendum. Despite a bigger-than-expected slip in February in its measure of manufacturing, Markit said the sector looked on track for one of its best performances of the past seven years with growth of 1.5% likely in the first three months of 2017. Export order growth picked up after a dip in January — something likely to please Chancellor of the Exchequer Phi...
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