Britain: High cost pressures on manufacturing

More British manufacturing entrepreneurs than ever in the last 30 years reported cost increases last month, according to an IHS Markit survey, highlighting pressure on the Bank of England to raise interest rates.

The IHS Markit manufacturing index rose to 58.1 points in November from 57.8 points in October.

Although revised lower than preliminary estimates by 58.2 points, the survey shows an improved picture for British companies, characterized by rising orders and employment.

But in terms of factory costs, which has traditionally been a good guide to the official producer price index, it has risen to its highest level since 1992, when data began to be recorded as companies face supply chain problems.

A survey by the British Chamber of Industry earlier in the week showed that costs are rising at the fastest rate in 20 years for businesses in the UK services sector.