According to the latest data from the Confederation of British Industry (CBI), released during the Asian session on Tuesday, UK utilities have posted record cost increases in the past three months and are dim optimistic about the future as inflation headwinds look set to further reduce demand.
Following the release of the data, Charlotte Dendy, head of economic research at the CBI, stated: “Those looking for positive signs in the services sector over the last quarter have little chance of success. Just as rising inflation is affecting to households and all business sectors, the service sector is no different.
Main results (according to Reuters)
The CBI Business Optimism Balance Sheet -which measures the difference between the percentage of companies that are optimistic and those that are not- sank to its lowest level since May 2020the height of the COVID-19 pandemic, for both consumer services and businesses.
Firms sharply increased the prices they charged customersthe most since 2006 in the consumer sector and the most in more than 20 years for business and professional services companies, but profit margins still shrank, the CBI said.
Source: Fx Street
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