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Business

UK factories rebound from Brexit shock

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Opening sequence

Business

UK factories rebound from Brexit shock

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COMING UP:UK factories rebound from Brexit shock

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Transcript

00:00:00
>> More signs the UK economy is rebounding from it's Brexit shock. Data Thursday showing factory activity jumping to a ten month high. The purchasing managers index for manufacturers surging from 48.3 to 53.3. It's biggest one month gain in nearly 25 years. That after it slumped in the wake of June's shock referendum result.
00:00:23
A big rise in export orders, one factor. Reuters UK economic correspondent, David Milliken.>> Sterling has fallen by, sort of around 10% against both the dollar and the Euro, which makes it a British manufactured goods a lot cheaper abroad and some businesses are starting to feel the benefit for that.
00:00:41
>> Survey compiler markets says companies are restarting work they put on hold after the referendum. Other data is also coming in strong. Consumer confidence numbers rebounding earlier in the week, house prices also on the up again, the figures easing fears of a recession. But rising prices are becoming a worry.
00:01:01
>> Businesses reporting that their sorta input costs, a lot of which are imports like oil or steel or other raw materials, are rising at about the fastest rate in five years. And they're also sort of passing on these costs.>> Rising prices for goods could crimp the recovery in consumer spending.
00:01:18
Higher inflation would also damp expectations of another rate cut in the autumn. But manufacturing is just a small part of the UK economy. Far more important is the huge services sector. It makes up about 80 percent of the economy. Data on Monday on how that sector is fairing, now the next big number to watch out for.