Factory

Output in the UK's manufacturing sector grew at a slower pace in the three months to August, but was kept afloat by stronger exports, according to the CBI.

Despite the slowdown compared with the three months to July, the CBI said output was much stronger than during the spring, when there was barely any growth to speak of.

The lobby group also the pick-up in exports, brought on by the weaker pound after the vote to leave the European Union.

A net balance of 11% of manufacturers surveyed reported an increase in output during the period, down from 16% in the three months to July.

Anna Leach, head of economic analysis and surveys at the CBI, said: "It's good to see manufacturing output growth coming in stronger than expected, and some signs that the fall in sterling is helping to bolster export orders.

"But the pound's weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices."

A net 11% also expect growth to remain steady over the next three months, while a balance of 8% expect prices to go up in that period as well - the highest figure since February 2015.

She added: "Manufacturers will welcome the new government's focus on industrial strategy as well as the Chancellor's recent guarantee over EU funding, which will help to provide certainty for universities and businesses investing in innovation and research and development.

"The most significant effects of the vote to leave the EU will flow over the medium to long-term. Therefore firms need to see ambitious decisions in the Autumn Statement that will secure the UK's economic future as changes to trade, regulation and access to skills loom on the horizon."