Britain’s manufacturers ramped up their stockpiling efforts last month in preparation for a potential no-deal Brexit in less than 90 days’ time, with factory output rising to the highest level in six months. In a sign of mounting stress for the British economy as the impasse in Westminster over Brexit continues, the stockpiling of finished goods increased at the second-fastest rate since 1992. The pound’s weakness also helped support export orders, with growth from the US, Europe, China, India, Brazil and Africa. Disruption after 29 March could curtail activity, while the removal of Brexit risks could lead businesses to run down their stockpiled goods rather than placing new orders. Rob Dobson, a director at IHS Markit, said the trend in production volumes remained lacklustre despite the stock-building.

Source: The Guardian January 02, 2019 12:03 UTC