A BUSINESS group has claimed the fall in the pound has created “winners and losers”, as figures reveal the UK has seen its strongest export growth in two-and-a-half years.

The CBI Industrial Trends Survey showed exports rose by eight per cent in the last quarter - the highest since April 2014.

The survey of 459 manufacturers, which covers July to September, also revealed that competitiveness in EU markets rose at the fastest pace since in 2000, with competitiveness outside the union also improving at the quickest rate since 2009.

Ross Smith, director of policy at North East England Chamber of Commerce said: “There have been winners and losers from the fall in the pound, and there is no doubt that some North East exporters have become more price competitive as a result.

“Export growth has been quite sluggish over the last 12 months as global demand has been weak, so those firms will welcome this short-term boost.

“But what businesses want more than anything is stability, and it is notable that respondents to our own Quarterly Economic Survey are currently citing exchange rates as their top growing concern for the first time in a decade.”

According to the survey, 27 per cent of firms said volume of output over the past three months was up, whilst 18 per cent said it was down, giving a balance of plus nine percent.

One fifth of firms said they were more optimistic about the general business situation than three months ago, but 28 per cent said they were less optimistic, giving a balance of minus eight per cent - an improvement on the previous quarter which was minus 47 per cent.

The outlook for demand over the next three months is generally positive, with export orders expected to rise further.

But concerns remain about the lack of skilled labour, with almost a quarter of respondents observing it could limit output over the next few months.

Rain Newton-Smith, CBI chief economist, said: “Manufacturers’ are optimistic about export prospects and export orders are growing, following the fall in Sterling.

“However, the weaker Pound is also feeding through to costs, which are rising briskly and may well spill over into higher consumer prices in the months ahead.

“Access to skills clearly remains a high priority, so manufacturers will be looking to the Government to implement a new migration system that meets the needs of business while responding to clearly-stated public concerns.

“Maintaining a preferential route between the UK and the EU, our largest trading partner, will be important.

“Meanwhile, firms will be seeking further details on a long-term, industrial strategy from the Autumn Statement that combines sectors and places.

“Ultimately, all businesses need greater clarity from the Government on the fundamental issues of skills and barrier-free access to EU markets as soon as possible.”