Sterling's fall fails to boost exporters
The plummeting pound has so far failed to lift the fortunes of British exporters, according to a Confederation of British Industry survey.
No go: The plummeting pound has not boosted exports as expected
Industrial order books contracted sharply last month and output expectations sank to their lowest levels since the recession of 1980.
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Ian McCafferty of the CBI said the figures made 'depressing reading.'
He went on: 'It is worrying that, despite the 20pc depreciation in sterling over the past year, export orders remain so weak.
'Our export competitiveness is increasing but many of our key export markets are contracting rapidly.'
The pound hit a record low against the euro for a fourth straight day yesterday, falling as much as 1.2% to 89.09 pence. But it strengthened against the dollar to $1.50 from $1.47.
Bank Monetary Policy Committee member Kate Barker said it is hard to judge how long the recession will endure.
'I anticipate there will be a recovery toward the end of next year - by which I mean there will come a point where I don't expect things to get worse - but it is the pace of that recovery which is hard to judge,' she told the Glasgow Herald.
A Bank of England survey showed that consumers' inflation expectations saw a record drop in November. This underlined concerns that Britain could plunge into a painful period of deflation.
And worryingly, the survey showed that 41% of respondents thought interest rates had risen over the past 12 months, despite aggressive cuts in the official rate.
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