Posted on April 16, 2017

British car manufacturers are benefitting from the weak pound. New figures show that exports are generating higher revenues once translated into sterling.

Exports are now accounting for a bigger share of turnover for UK car and trailer companies, reversing the usual situation where the domestic market was the most important source of revenues.

Average monthly export revenues in the past six months stood at £3.4bn, according to the Office for National Statistics, up 16pc on the £2.9bn average a year earlier.

This is largely due to the fall in the pound’s exchange rate since the Brexit vote last June, which has pushed up the prices exporters receive for their goods by 9.3pc compared with February of 2016.
At the same time the effective exchange rate is down 10.7pc, with rising export prices moving almost in tandem with the currency.

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