LONDON (CU)_Over the past few months, United Kingdom’s economy has begun to recover from the COVID-19, with pandemic-induced restrictions being eased and international borders being reopened. Accordingly, there has been a sharp rise in consumer demand across the European nation, but persistent supply problems have obstructed the ability of businesses to take full advantage of the reviving economy.
According to a survey conducted by accountancy firm BDO, in the month of October, the output of British businesses slowed for a sixth consecutive month, as a result of a supply chain crisis, shortage workers and rising energy prices across the globe. Recent figures published by the organisation showed that growth in business output in the UK last month, fell to its lowest level since the last national coronavirus lockdown in March, and its measure in October fell to 103.35 points, from 105.23 points in the previous month.
The manufacturing industry of the European nation has been particularly struggling to access the right materials, after their production and delivery schedules were severely disrupted during COVID lockdowns. On the other hand, the industry is also grappling with a shortage of computer chips, which has affected the automotive sector of the UK and around the world.
“Businesses are facing an increasingly difficult winter,” Kaley Crossthwaite, a BDO partner, said. “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.” She further noted that consumers are also beginning to see the impact of shortages in labour and raw material, as well as with rising fuel and energy prices, which could lead to cutbacks in discretionary spending.
“In the final months of the year, businesses and consumers alike will be hoping that the economy can find some Christmas spirit over November and December and help take us into the New Year on a high,” Crossthwaite added.
