UK factories wary of sterling's fall and rising costs in new year

Manufacturers worried Brexit pressure on pound will intensify in 2017 and give rise to inflation, survey reveals

Britain's manufacturers are bracing for more swings in the exchange rate and rising costs, as the start of Brexit negotiations in 2017 threatens to keep the pound under pressure.

Factories have had to cope with sharp rises in energy and raw material costs in recent months as the weak pound makes imports to the UK more expensive. For manufacturers that export there has been a small silver lining as the fall in the pound since the Brexit vote has made their goods cheaper to overseas buyers, but that boost has only partially offset the pressure from higher costs.