March 2022
Featured in this insight: Manufacturing, engineering & industrial
Four-fifths of manufacturing firms planning price increases in next three months: The latest CBI survey, has found that in the next few months, four-fifths of manufacturers are expecting price rises - the largest number since 1976 when a series of energy crises led to sharp rises in the price of crude oil, resulting in manufacturers raising prices.
Just like in the 1970s, the UK is experiencing sky-rocketing energy costs, which has resulted in a net balance of +77% firms saying they need to increase prices, an increase from +66% in January.
The latest survey revealed order books at the weakest point in four months, with a net balance of +20% of factories reporting rising orders, a fall from +24% at the start of 2022. However, according to the CBI, this figure was still well above the long-run average.
The CBI deputy chief economist, Anna Leach, said: “Manufacturers will be buoyed up by strong order books and output growth, but amid ongoing cost pressures, almost four in five firms expect to increase prices in the next three months.”
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