The Lloyds Bank Business Barometer found that a quarter intended to boost average wages by at least 2% in the next 12 months. A fifth of businesses that have annual turnover of more than 100 million pounds predicted they’ll increase pay by more than 5%.The report will fan Bank of England concerns about the so-called second-round effects on inflation. That’s where higher prices fuel demands for higher pay, which then force firms to increase prices even more to protect profit margins.
The report also showed that hiring demand remains strong, with almost half of firms expecting to take on staff in the next 12 months as the economy recovers from the coronavirus pandemic. That underscores the tightness of the labor market, which is exacerbating inflationary pressures. Geopolitical and economic uncertainty dragged down business confidence in March, by the most since the first two months of the pandemic, according to the survey. Manufacturing and retail firms were hit hardest, though across sectors confidence remained above the long-term average.
“March’s data show UK businesses are facing significant challenges from the impact of Russia’s invasion of Ukraine in increasing economic uncertainty and ongoing inflationary pressures,” said Hann-Ju Ho, senior economist at Lloyds. “Following encouraging improvements at the start of the year, March’s fall in confidence is therefore disappointing, but not surprising.” —
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: bworldph - 🏆 9. / 68 Read more »
Source: rapplerdotcom - 🏆 4. / 86 Read more »
‘Bridgerton’ 2 sets premiere record; ‘Business Proposal’ tops Netflix chart for second week“Bridgerton” season 2 debuted at No. 1 and set a record on Netflix while the Korean drama “Business Proposal” became the most viewed non-English show for the second week.
Source: manilabulletin - 🏆 25. / 51 Read more »