THE STRENGTH of sterling is serving to stilt Britain’s economic growth by constraining export performance and driving a surge in cheap imports, experts have warned.
The chief economist of a financial information firm, called on the new Government to revive the manufacturing sector, encourage business investment and boost export competitiveness.
He made the comments as latest figures showed Britain’s factories increased production again in May, extending the current sequence of expansion to 27 months, according to the latest survey of purchasing managers. But most of the growth is due to domestic expansion, rather than to an increase in exports.
Although the rate of output growth edged lower, the extent of the easing was only minor and much less severe than April’s steep slowdown, said survey compiler Markit.
