Weak pound is hitting spending rather than boosting UK trade | Larry Elliott

Sterling's slide should have improved net trade - but Britain's manufacturing base is now too small to take advantage

The downside to a weak pound is immediately apparent because imports get dearer and foreign holidays get more expensive. With sterling at its lowest level for eight years, there have been plenty of horror stories of travellers from the UK being gouged by foreign exchange bureaux.

The benefits of a weaker currency tend to be less obvious but are potentially significant nonetheless. Exports become cheaper and the UK becomes a more attractive destination for overseas tourists. This leads to an improvement in the balance of payments, something that is sorely needed in Britain's case.

Related: UK consumer spending growing at weakest rate in nearly three years