Need much weaker Pound for reviving manufacturing sector – John Mills

How low can Sterling go is the question faced by one and all and at this point it could be better answered by an economist rather than a technical analyst given that we are operating in an uncharted territory.

“Sterling is still overvalued”, says John Mills, Economist and Chairman at JML and adds further that we need a much weaker Sterling…around 1.10 or even near parity against USD and EUR if UK intends to see manufacturing sector revival. He is joined by Tip TV’s Zak Mir.

Key quotes

We have sold off assets in last decade and that has pushed value of Sterling leading crash in the manufacturing sector

High end manufacturing is relatively inelastic to changes in exchange rate

Service sector doing good with exchange rate around 1.20/1.30

Parity with Dollar and Euro could be ok…we need it for low medium tech manufacturing revival

We need low and stable pound...at competitive level else people won’t invest in manufacturing

Hard Brexit – we need get a good deal. Depends on how far flexible other countries are. If they insist on no border controls and things like that…then we would have to come out of single markets