UK business output slows for sixth month in a row amid supply chain crisis

This was an interesting in The Guardian, The full report can be read here:
https://www.theguardian.com/business/2021/nov/08/uk-business-output-falls-for-sixth-month-in-a-row-amid-supply-chain-crisis
Rising energy prices and worker shortages also take toll, says accountancy firm BDO.British businesses’ output has slowed for the sixth month in a row amid a supply chain crisis, energy price rises and a shortages of workers, according to a closely watched survey of big employers.

UK business output growth hit its lowest level since March during the last national coronavirus lockdown, according to the accountancy firm BDO. Its measure fell from 105.23 points in September to 103.35 points in October.

Businesses across the economy have been trying to keep up with rising demand after the ending of coronavirus restrictions but persistent supply problems have prevented them from taking full advantage of the opening up of society. Rising costs, including the increase in the price of energy, have also slowed growth.

“Businesses are facing an increasingly difficult winter,” said Kaley Crossthwaite, a BDO partner. “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.
“Signs of a pickup in activity and employment growth across many areas have been somewhat overshadowed by skyrocketing costs faced by businesses in all parts,” he said. “Businesses are having difficulty filling vacancies due to a tightening jobs market, which is not only holding back activity in some cases and contributing to rising backlogs of work but also pushing up wages.

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