Half of UK businesses to increase prices as supply and labour costs rise
Half of businesses expect to raise prices as the UK economy faces higher labour and supply chain costs.
As the UK faces staff shortages across multiple sectors a quarter of firms are expecting wages to grow by 3 per cent or more over the next twelve months while just nine per cent of businesses think that wages stay the same.
A challenging environment and rising costs has caused business confidence to dip by three points to 40 per cent in November, but it remains above the annual average according to the Lloyds Bank business barometer.
Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Business confidence remains robust above the long-term average, but it dipped this month as economic optimism and trading prospects were affected by the persistence of rising costs and supply chain issues.
“Pay expectations remain elevated with a quarter of businesses anticipating rises of 3 per cent or more in the next 12 months which will add to business costs, but it bodes well for staff facing into economic challenges,” he added.
Nine out of the twelve UK regions and nations saw confidence decline, with Wales, the South East and East of England the only places to register an uptick in confidence.
Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “November has been a challenging month for UK businesses” confidence in many of the regions” also citing “supply chain issues and rising costs” for a pessimistic outlook amongst companies.
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