UK economy rises to the occasion

25 August 2016 - 09:54 By ©The Daily Telegraph

The UK economy is responding well to Brexit. Early indications show exports are rising, construction companies are landing big contracts and even housing sales are relatively resilient. The falling pound was taken as an indication that international investors were worried about the health of the UK economy after the vote, but the dive in sterling also has positive effects.Manufacturers reported the strongest export orders in two years in a survey by the Confederation of British Industry as the weaker currency makes British goods more competitive abroad.But a weaker pound will mean higher import prices- consumer prices crept up by 0.6pc in the 12 months to July, but economists believe that could rise by 2pc or even 3pc by the end of next year, as the effect of the weaker exchange rate feeds through to the wider economy. ..

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