British manufacturing sector expands most in 5 monthsStaff writer ▼ | July 2, 2016
The British manufacturing sector logged a moderate improvement in June, driven by solid acceleration in new work and output, results of a survey, which received almost all responses ahead of the "Brexit" vote, showed.
Britain Index rose to 52.1 from a revised reading of 50.4
The survey was carried out between June 13 and 27 and Markit Economics said almost all the responses included in the final index readings were received prior to June 23rd's "Brexit" referendum.
The recent plunge in the pound of nearly 10 percent due to "Brexit" is widely expected to cushion any negative impact from the event. However, losing access to the single market and several free trade agreement could cost the U.K. heavily in the long run.
In short, then, the U.K.'s meagre manufacturing sector, which accounts for just 10 percent of GDP, is not going to prevent the overall economy slipping into recession, Samuel Tombs, an economist at Pantheon Macroeconomics, noted. ■