Skip to content
Search
AI Powered
Latest Stories

Business activity slows on staff and supply shortages

Business activity slows on staff and supply shortages
(Photo by TOLGA AKMEN/AFP via Getty Images)
AFP via Getty Images

Britain's private sector business activity slowed sharply in August due to ongoing staff and supply shortages, a survey showed Monday.

The composite purchasing managers' index (PMI) hit a six-month low of 55.3 points, compilers IHS Markit and the Chartered Institute of Procurement and Supply said in a statement.


That compared with a reading of 59.2 in July, but it held above the key 50 level to indicate expansion.

"An abnormally large slowdown in overall activity in August offers a stark warning to the UK economy that the accelerated levels of growth we've seen earlier this summer are not sustainable," said CIPS group director Duncan Brock in a statement.

"It was the slowest output expansion for six months, and the worst shortages of staff and materials on record are mostly to blame."

IHS Markit noted that the economy, which fully reopened last month, continued to grow above its pre-pandemic average.

However it also highlighted "clear signs" of a loss of momentum in the third quarter, or three months to September.

"Despite Covid-19 containment measures easing to the lowest since the pandemic began, rising virus case numbers are deterring many forms of spending, notably by consumers, and have hit growth via worsening staff and supply shortages," said IHS Markit economist Chris Williamson.

"Supplier delays have risen to a degree exceeded only once before - in the initial months of the pandemic - and the number of companies reporting that output had fallen due to staff or materials shortages has risen far above anything ever seen previously in more than 20 years of survey history."

Recent official data showed that Britain's economy rebounded 4.8 percent in the second quarter as the government began relaxing lockdown restrictions amid its fast-paced vaccination programme.

However, the rebound faces challenges as global supply chain bottlenecks persist and a jobs protection programme is set to end in September.

More for you

Britvic growth in annual revenue and profits

Strong numbers for Britvic

Britvic, the soft drinks manufacturer set to be acquired by Carlsberg, has posted robust annual results after investment in marketing and product innovation helped it maintain demand for its brands.

Over the year to Sept 30, the company’s pre-tax profits climbed 10.5 per cent to £173.2 million despite a £21.3m hit related to the proposed Carlsberg deal. Britvic stated that its growth was driven by both volume and price-mix, with strong demand for brands such as Pepsi, Tango, Lipton, MiWadi and Ballygowan.

Keep ReadingShow less
Met Police identifies four suspects in Post Office Horizon scandal

Met Police identifies four suspects in Post Office Horizon scandal

The Metropolitan Police has identified two new suspects in its investigation into possible criminal offences as part of the Post Office Horizon scandal. This takes the total number of individuals to four as the force also revealed it believes more suspects will be identified as the inquiry progresses.

Scotland Yard said members of the investigation team met with Sir Alan Bates, the leading Post Office campaigner, and fellow victims to update them on the development.

Keep ReadingShow less
Discover Britain's top hotspots for independent shops

(Photo by Chris J Ratcliffe/Getty Images)

Discover Britain's top hotspots for independent shops

New research by American Express Shop Small reveals the nation’s top 10 hotspots for independent shops, showcasing the small businesses and the valuable role they plan in their local communities.

American Express partnered with retail experts GlobalData to identify the top high streets for independent shops through ranking factors such as the number of independent outlets, variety of business types, and vibrancy of the high street.

Keep ReadingShow less
'Walkable high streets boost economy'
(Photo by Christopher Furlong/Getty Images)
Getty Images

'Walkable high streets boost economy'

Shoppers who walk and wheel spend more than those arriving by car, states a recent report, demonstrating the significant economic and social benefits of investing in walkable town centres, challenging traditional views on urban accessibility.

The findings published in third edition of "The Pedestrian Pound Report", recently published by Living Streets, the UK charity for everyday walking, come at a critical juncture for British high streets, with a record number of retail failures in 2022 and a vacancy rate of nearly one in seven by the end of 2023.

Keep ReadingShow less
Yvette Cooper

Home secretary Yvette Cooper speaking at the annual conference hosted by the NPCC and APCC on 19 November 2024

Photo: GOV.UK

Home secretary pledges to restore neighbourhood policing

Home secretary Yvette Cooper has announced plans to rebuild neighbourhood policing and combat surging shop theft as part of an ambitious programme of reform to policing.

In her first major speech at the annual conference hosted by the National Police Chiefs’ Council and Association of Police and Crime Commissioners on Tuesday, Cooper highlighted four of the key areas for reform: neighbourhood policing, police performance, structures and capabilities, crime prevention.

Keep ReadingShow less