UK services industry sees record cost inflation - CBI

Asia's Tech News Daily

FILE PHOTO: People sit inside a restaurant, amid the outbreak of the coronavirus disease (COVID-19), in Chinatown, London

LONDON (Reuters) – Costs are rising at the fastest rate in over 20 years for firms in Britain's services sector, according to a business survey released on Tuesday which shows why the Bank of England may soon raise interest rates.

The Confederation of British Industry said its quarterly survey of the services sector showed the quickest growth in costs for both business and consumer services companies since the survey began in 1998.

Separate data from Lloyds Bank showed a record 50% of businesses plan to raise prices and a quarter of them expect to raise pay by 3% or more over the next 12 months.

“Record growth in costs is threatening to put a winter freeze on the service sector recovery next quarter,” CBI economist Charlotte Dendy said.

Both surveys took place in the first half of November, before news of the Omicron variant of COVID-19 dented the confidence of financial market investors who now see a roughly 60% chance that the BoE will raise rates in December.

British consumer price inflation hit a 10-year high of 4.2% in October and the BoE expects it to reach nearly 5% next year.

In the short run, higher interest rates will not reduce pressure from a global surge in energy prices and supply chain difficulties. But they may reduce knock-on effects that would come if companies increase prices, and workers ask for higher pay, in anticipation of permanently higher inflation.

Tuesday's CBI data showed businesses already think they will be unable to pass on higher costs in full. Although average selling prices are expected to rise by a record amount, profit growth is expected to stall over the coming three months for services firms, due to the rise in costs.

The CBI reported the fastest hiring since 2015 by business and professional services companies.

Data from recruitment website Indeed, also released on Tuesday, showed vets, optometrists, auditors, animators and truck technicians were the roles that their customers were finding it hardest to fill.

(Reporting by David Milliken; Editing by William Schomberg)

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Alexa virtual assistant returns after service outage

Amazon’s Alexa virtual assistant has come back online after it was hit by a service issue in the UK on Friday morning. The outage left thousands of users unable to ... Read more »

Peloton hints at cuts after report on fall in demand for exercise bikes

Photograph: Shannon Stapleton/Reuters As shareprice falls, CEO admits firm needs to ‘evaluate’ size of workforce and reset production Peloton is considering workforce cuts and production changes as investors hammered its ... Read more »

Bitcoin crashes to five-month low as Russia proposes crypto ban

Russian President Vladimir Putin delivers a speech in Moscow. Russian central bank has proposed bitcoin and crypto mining ban. Photo: Sputnik/Alexey Vitvitsky/Reuters Bitcoin's (BTC-USD) latest crash has wiped billions off ... Read more »

House sales down by a fifth in December compared with a year earlier

The number of house sales in December last year was down by a fifth compared with a year earlier, but bounced upwards from the previous month. An estimated 100,110 transactions ... Read more »

Former F1 boss Eddie Jordan exits £3bn race for Playtech

Former Formula One team boss Eddie Jordan has pulled out of the multibillion-pound race to buy software company Playtech, reportedly worried that his bid would be scuppered by a group ... Read more »

KKR's bid target Telecom Italia set to make veteran manager Labriola CEO

TIM General Manager Pietro Labriola poses for a portrait in Rome By Elvira Pollina MILAN (Reuters) – Telecom Italia (TIM) is set to appoint General Manager Pietro Labriola as CEO ... Read more »

German gas imports fell 7% in Jan-Nov, bill jumped 78.5%

An old water tower stands in front of a gas storage facility of German Gasag energy company in Berli.. FRANKFURT (Reuters) – Germany imported 7% less natural gas in the ... Read more »

Sterling weakens as Wall Street selloff hits risk appetite

FILE PHOTO: Pound and U.S. dollar banknotes are seen in this illustration LONDON (Reuters) – The pound weakened broadly on Friday, pulling back from a 23-month high versus the euro ... Read more »

Omicron restrictions spark worse-than-expected Christmas retail sales slump

Christmas shopping was hit by Plan B restrictions (PA Wire) Retail sales suffered a worse-than-expected slump over Christmas, new data published this morning shows. Figures from the Office for National ... Read more »

The Cineworld share price surges. Should I buy the stock?

Cineworld cinema The Cineworld (LSE: CINE) share price is having a storming start to 2022. Already this year, the stock is up 39% as I write today. However, to throw ... Read more »

Here's how I'd invest £10k in FTSE 100 shares right now

Close-up of British bank notes The FTSE 100 index is home to British corporate giants, many of them in business for several decades. This large-cap index mainly comprises financial, consumer ... Read more »

How I'd use £35 a week to build passive income streams

Hand holding pound notes The attraction of passive income is that I get money without working for it. And a passive income streams I would use includes investing in a ... Read more »

2 cheap penny stocks to buy as inflation soars

Piggy bank being carried by balloon I believe getting exposure to gold is a good idea as inflation surges. One way I’m thinking of doing this is by buying metal ... Read more »

UK retail sales slump in December after early Xmas shopping, Omicron spread

FILE PHOTO: People walk along a busy shopping street as people look for bargains in the traditional Boxing Day sales in Liverpool LONDON (Reuters) -British retail sales slumped in December ... Read more »

Tight supplies, heating demand drive global gasoil margins to multi-year highs

A worker walks along oil pipes at Dinh Vu oil port in Hai Phong city By Mohi Narayan, Roslan Khasawneh and Ron Bousso (Reuters) – Refiners globally are reaping the ... Read more »

TotalEnergies tells rights group it backs sanctions on payments to Myanmar junta

Fuel price signs are seen at a TotalEnergie petrol station in Nice (Reuters) – TotalEnergies has told a rights group that it backs the imposition of sanctions on its payments ... Read more »

Analysis-German big business piles pressure on Lithuania in China row

1 / 3Analysis-German big business piles pressure on Lithuania in China rowFILE PHOTO: Flags at Taiwanese Representative Office in Lithuania By Andrius Sytas and John O'Donnell VILNIUS/FRANKFURT (Reuters) – Lithuania ... Read more »

Twitter down for many users as outages reported globally

Twitter has not officially commented on what caused the brief outage of service (AFP via Getty Images) Twitter appears to have suffered a brief outage on Friday morning with many ... Read more »

Unruly, maskless passenger forces London-bound flight to return to Miami

Photograph: Joe Raedle/Getty Images For airline staff, navigating the pandemic has meant grappling with a surge in bad behavior, ranging from temper tantrums to punching flight attendants in the face. ... Read more »

ELS sales in S. Korea gain 4.6 pct in 2021

SEOUL, Jan. 21 (Yonhap) — Sales of equity-linked securities (ELS) in South Korea expanded nearly 5 percent in 2021 from a year earlier on greater issuance of products tracking overseas ... Read more »

S. Korea to raise low-rate loan ceiling for Egypt to US$1 billion

SEOUL, Jan. 21 (Yonhap) — South Korea plans to raise the ceiling of its low-interest rate loans to Egypt to US$1 billion in an effort to strengthen bilateral cooperation, the ... Read more »

Nasdaq 100 futures fall after Netflix's earnings disappoint

U.S. stock index futures were lower during overnight trading Thursday following a disappointing earnings report from Netflix, building on the major averages' declines during regular trading. Futures contracts tied to ... Read more »

'You definitely don't want to be guessing this year.' Here's how to access IRS transcripts that can help avoid delays

Tetra Images | Tetra images | Getty Images This tax-filing season is expected to be difficult, as the IRS works through millions of unprocessed returns, according to a report from the National Taxpayer ... Read more »

‘I was just really scared': Apple AirTags lead to stalking complaints

Police across the US have received reports of devices intended to help locate lost items being used for nefarious purposes In early January, Brooks Nader, a 26-year-old Sports Illustrated swimsuit ... Read more »

Rachel Reeves proposes new tax hours before saying: ‘Now is the wrong time to raise taxes'

Rachel Reeves proposed a new tax on buy-to-let and investment money, but later went on to say: ‘Now is the wrong time to raise taxes’ – Christopher Furlong/Getty Images Rachel ... Read more »

Here are 3 things to know about unemployment claims

A job seeker receives information from a recruiter during a job fair in Miami, Florida, on Dec. 16, 2021. Eva Marie Uzcategui/Bloomberg via Getty Images The number of people filing ... Read more »

Fed releases long-awaited study on a digital dollar, but doesn't take a position yet on creating one

Federal Reserve Board Chairman Jerome Powell speaking at a re-nomination hearing of the Senate Banking, Housing and Urban Affairs Committee, on January 11, 2022, in Washington, DC.Pool / Getty The ... Read more »

Biden 'not sure' enhanced child tax credit, free community college will stay in Build Back Better

U.S. President Joe Biden holds a formal news conference in the East Room of the White House, in Washington, D.C., U.S., January 19, 2022.Kevin Lamarque | Reuters Important pieces of ... Read more »

1 growth stock down 40% that could soar, according to Wall Street

Businessman leading a chart upwards It’s not been a pretty few months for US growth stocks. This is due to the rising rates of inflation, and the interest rate hikes ... Read more »

Stocks making the biggest moves midday: Marriott, Mastercard, Casper, Etsy and more

People walk in front of the entrance of the five-star Paris Marriott Hotel.Fred Dufour | AFP | Getty Images Check out the companies making headlines in midday trading. Marriott International ... Read more »

Medicare doesn't cover at-home Covid tests. Here's how to get them for free

Joseph Prezioso | AFP | Getty Images You may have discovered that Medicare doesn't cover the cost of at-home Covid tests.  While there are ways for beneficiaries to get free ... Read more »

Tudor portfolio manager on where she's finding alpha in the tech sector with rising rates

(Click here to subscribe to the new Delivering Alpha newsletter.) With the prospect of higher interest rates looming, 2022 has already been a tough year for the tech sector. The Invesco QQQ ... Read more »

Factbox-How much does Germany need Russian gas?

FILE PHOTO: Nord Stream 2 land fall facility in Lubmin By Vera Eckert and Kate Abnett FRANKFURT/BRUSSELS (Reuters) – Germany's gas supply has come into focus as high European prices, ... Read more »

Evergrande bondholders warn of legal action over ‘lack of engagement'

Photograph: David Kirton/Reuters A group of international bondholders in embattled Chinese property developer Evergrande have hired an offshore law firm and warned of legal action if the company continues to ... Read more »

PHOTO: Protests against high electricity prices held in several Norwegian cities

On Thursday, several protests against high electricity prices took place in Oslo, Kristiansand, Bergen, Stavanger, Arendal, and Harstad. Outside the Norwegian parliament (Storting), many people turned up holding posters with ... Read more »

Americans say they need to earn $122,000 to feel financially healthy

Rising prices have already taken a toll on how many Americans feel about their finances. Even as the economy recovers and employers roll out wage increases to attract and retain ... Read more »

Stavanger: Strong growth in rental housing prices registered in 2021

The growth in rental housing prices has been moderate in 2021. Stavanger and Sandnes are exceptions, with a sharp rise in rental prices. Overall, rental housing prices in Norway rose ... Read more »

Some mothers are poised to get up to $1,000 per month through a new guaranteed income program

10'000 Hours | DigitalVision | Getty Images Certain mothers in New York City are poised to get a significant boost in income, thanks to the launch of a new guaranteed ... Read more »

Calls for one-off cash payments for people hit by UK energy bills crisis

Photograph: Óscar del Pozo/AFP/Getty Images Thinktank says Rishi Sunak should support millions through £8.5bn programme of ‘helicopter money’ The government should adopt a programme of “helicopter money” to support households ... Read more »

5% dividend yield! A penny stock I'd buy as inflation rockets

Businessman leading a chart upwards I still believe buying UK gold-producing shares is a sound idea as inflation rises. Demand for safe-havens like bullion tends to soar when concerns over ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic