Brexit strength: Factory orders hit highest level in 30 years amid export boom

Soaring demand for UK goods from overseas helped drive factory orders to a 30-year high in June, according to a monthly survey by the Confederation of British Industry (CBI).

Export order growth was its strongest in 22 years, amid the weaker pound following last year’s referendum.

The factory order book balance smashed expectations to come in at +16 in June, its highest level since 1988.

Economists has predicted a reading of just +7.

It comes after disappointing official data from the manufacturing sector.

The most recent reading from April showed that output increased by just 0.2 per cent.

Experts said the more recent CBI survey signals that this is now likely to have been just a blip and economic growth in the second quarter of 2017 will be stronger than the start of the year.

Andrew Wishart, assistant economist at Capital Economics said: “Manufacturers’ overwhelmingly positive response to June’s CBI Industrial Trends Survey adds to other evidence suggesting that the slowdown in manufacturing output shown in the hard data will prove temporary.

“Overall, today’s strong survey suggests that the recent weakness in manufacturing output in the hard data will prove temporary.

“As a result, we continue to expect solid manufacturing and export growth to help offset the slowdown in consumer spending growth this year.”

The positive CBI reading also raised expectations that the Bank of England could raise interest rates this year amid more proof that the economy remains strong after the Brexit vote.