Record Share of UK Manufacturers Raise Prices, Cbi Survey Shows

LONDON (Reuters) – The proportion of British manufacturers expecting to raise prices over the next three months hit its highest since records began in 1975, according to a survey on Tuesday that underlined the scale of fast-growing inflation pressures.

The Confederation of British Industry said a net balance of 80% of manufacturers in March had raised prices for domestic orders booked over the next three months, up from 77% in February.

The survey also showed a joint record share of manufacturers reported higher order books this month, with the net balance matching November’s all-time high of +26%.

“This survey highlights strong order books and output growth, but the cost pressures facing manufacturers have been amplified by the conflict in Ukraine,” said CBI deputy chief economist Anna Leach.

“The government must use tomorrow’s Spring Statement to provide relief to both energy-intensive industries and vulnerable consumers,” Leach added, referring to finance minister Rishi Sunak’s budget update to parliament on Wednesday.

The CBI’s survey of 229 manufacturers was conducted between Feb. 24 and March 14.

The CBI’s gauge of prices shows a moderate correlation with the official measure of producer output inflation, but less so than the IHS Markit/CIPS monthly survey of manufacturers.

(Reporting by Andy Bruce; Editing by William Schomberg)