LONDON?The U.K. manufacturing sector continued to expand at a brisk pace in October, as the weakened currency boosted exports, a survey showed Tuesday.
Financial information firm IHS Markit Ltd. said the purchasing managers index for the manufacturing sector stood at 54.3 last month, down slightly from the revised 55.5 in September, but above the expectations of analysts' polled by The Wall Street Journal. Readings above 50 signify growth.
The October figure was also well above the index's long-run average of 51.5. Manufacturers reported that the sharp depreciation of sterling, which has lost nearly 20% against the dollar since the June 23 vote to leave the European Union, boosted overseas orders,including from the EU, China and the U.S.
The weakening of the pound, however, is proving a mixed blessing, the survey showed, as British manufacturers are also starting to feel the pinch of higher import prices.
"The downside of the weaker currency is becoming increasingly evident ... with increased import prices leading to one of the steepest rises in purchasing costs in the near 25-year survey history," said Rob Dobson, senior economist at IHS Markit.
Write to Wiktor Szary at Wiktor.Szary@wsj.com
(END) Dow Jones Newswires
November 01, 2016 06:55 ET (10:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.