Growth prospects for many firms are being squeezed by inflation, which went back to its 40-year high in September, according to experts at the British Chambers of Commerce.
The organisation’s Head of Research David Bharier said:“Food, housing, transport, and household goods and services all remain major contributors to the increase. Producer Price Inflation, running at 20%, remains near record highs, and shows the scale of input price rises businesses are having to absorb.
“With the Bank of England set to raise interest rates even further in the coming weeks, businesses now find themselves caught in a pincer movement between rising input and borrowing costs.
“The economy looks to be on the cusp of recession, and with the Chancellor signalling that energy bill support may not go beyond six months the outlook is bleak for many firms.
“It is now critical that Ministers listen to the Chamber of Commerce Network to understand the extent of the problems piling up at firms’ doors.
“Businesses will need to see a clear long-term economic plan to provide a stable environment to invest, alongside specific measures that relieve unprecedented inflationary pressures.”
