Factory and retail sales climb despite fears of Brexit slump

Weakness in sterling having positive effect on manufacturers as goods made in Britain become cheaper for buyers overseas

British manufacturers and retailers are reporting an upswing in sales, despite fears Brexit could hamper future growth, as the weak pound bolsters exports abroad and consumer spending at home.

Retail sales increased by 1.3% on a like-for-like basis last month from August 2016, when they fell 0.9%, according to the British Retail Consortium. Meanwhile the EEF manufacturers' organisation said there was rising demand for goods made in Britain from Europe and the rest of the world.

Related: UK construction 'flirting with recession' as Brexit uncertainty bites