Low sterling exchange rate 'boosts industry'

The current low rate of currency exchange for sterling is having a positive effect on the British manufacturing industry, according to one Japanese businessman.

Masahiro Sakane, chairman of the world's second-largest manufacturer of heavy construction equipment, Komatsu, told the Daily Telegraph that a weak sterling is proving beneficial to industry.

"If you look at the past five years it has been a blessing. And although the market in the UK is shrinking, the machines we produce in the UK are shipped and exported to Europe," he said to the paper.

Mr Sakane added: "The weaker sterling is, the more that will help, particularly within Europe."

The businessman's comments tally up with the latest manufacturing data published in the CIPS/Markit UK Manufacturing PMI, which was published earlier this month.

According to the PMI, manufacturing output in the UK rose at its fastest pace since September 1996.

Posted by Sarah Pitton

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