Ann: 3rd Quarter Trading Update, page-7

@madamswer manufacturing accounts for 8% of the UK workforce, less than retail which is the largest private employer. I am not aware of the regional breakdowns but accept your point about the relative significance of manufacturing in the North and Midlands.

I recently spoke with a CEO of a Midlands based manufacturer who said that there is no overall benefit to his business from the weaker pound given most his manufacturing inputs are imported and labour costs are likely to rise as the supply of workers from Eastern Europe is cut off.

I agree that CYB is likely to be okay given that employment levels are more important for them than consumer confidence and are currently at all time highs. This is why I said "I suspect they'll be ok...".

It is important to remember that to date exporters have enjoyed the benefits of a weaker currency but are yet to feel the pain of whatever tariff structure/border controls are put in place once Britain actually leaves the EU. On the other hand, importers have been hit by the weak pound which has caused a spike in inflation but are yet to be impacted by import tariffs which are likely to be imposed following the exit.

Having said all that my view is that although there will be further adverse impacts on the economy as already evidenced by the weak performance of UK retailers, these effects will most likely be temporary due to the one-off cost of adjusting to the new relationship. In the long-term I can't see why it will make much difference to Britain's economy whether or not it is part of the EU.

As for investing on the basis macroeconomics, I completely agree with you. Since Brexit I have established a portfolio of UK listed stocks many of which are exporters that have flourished since last summer. My investing decisions were based exclusively on the merits of the underlying businesses with limited consideration of any "extraneous factors".