Rolling coverage of the latest economic and financial news
- BDO: Output growth across UK businesses lowest since lockdown
- PwC: Consumer confidence hit by inflation, energy crisis and HGV driver shortages
- Energy crisis: Treasury reprimands Kwarteng after help for firms claim
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the UK supply chain crisis and business.
The UK’s supply chain crisis is hitting business and consumer confidence, as worries over inflation, the energy crisis and HGV driver shortages mount.
Ultimately, this could mean consumers end up paying more for less this winter.
Many businesses are caught between a rock and a hard place. Long-term planning for a post-pandemic and post-Brexit economy is crucial, but the significant challenges at their door make it increasingly difficult to focus beyond these short-term issues. The Chancellor’s autumn Budget will be watched closely later this month to see whether the government steps in to restore the confidence felt through the summer.”
The inflationary factors that have triggered the decline in sentiment are unlikely to ease in the short term, particularly for grocery, utilities and petrol. Combined with the current problems facing those industries in relation to supply, we’re beginning to see it affecting consumers’ day-to-day lives and, in turn, sentiment and demand.
“For both retail and leisure sectors, the timing couldn’t be worse. After the disappointment of last year, retailers and hospitality operators desperately need a strong run up to Christmas. Even without lockdowns, they will need to convince consumers to part with savings to have any hope of recovering to pre-pandemic levels.
Continue reading...from The Guardian https://ift.tt/3oVqSEF
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