A recovery in manufacturing on the back of rising exports could be in jeopardy after the pound broke the key $1.70 barrier for the first time in almost six years.
Figures from the CBI’s latest industrial trends survey yesterday showed order books at their highest since December, but the buoyant picture was undermined by fears over the impact of the strengthening of sterling. Katja Hall, the CBI’s deputy director-general, said: “The recent rise in sterling could impact on the resilient export orders we have seen lately.”
With some analysts suggesting that a lengthy period of economic growth could even send the pound towards $2, manufacturers are becoming increasingly concerned that they could be priced out of key export markets.
Although the surge in the pound