Business output growth falls for sixth month
By Richard Wright | 8th November 2021
Business output growth across the UK has slowed for the sixth consecutive month - bringing it to the lowest overall level since March - as supply chain disruption and staff shortages continue to hit businesses, a new report finds.
The latest Business Trends report from accountancy and business advisory firm BDO LLP provides a snapshot of output in the manufacturing and services sectors.
Manufacturing output growth, which has been particularly badly impacted by supply chain disruption, fell by 2.09 points to hit 97.03 in October - edging closer to the 95-mark which separates growth and decline.
Staff shortages have been the main driver behind the slowdown in output growth in the services sector, which dropped by 1.85 points to 104.15 in October.
Elsewhere in the report, BDO's Inflation Index continued to rise in October - it now represents the highest value since April 2017. Higher consumer prices driven by an increase in the energy price cap drove the overall rise.
Kaley Crossthwaite, Partner at BDO LLP said: "Businesses are facing an increasingly difficult winter. Between rising inflation and a lack of staff, 2022 could be a difficult year for companies who have been forced to prioritise short-term problems over long-term growth. At the same time, consumers are beginning to see the impact of these shortages with rising fuel and energy prices, which may in turn lead to cutbacks in discretionary spending.
"In the final months of the year, businesses and consumers alike will be hoping that the economy can find some Christmas spirit over November and December and help take us into the new year on a high."
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