A CBI survey has shown that manufacturers are battling with the worst cost pressures in 20 years.
A massive 51 per cent of the 419 respondents said that their average costs had increased during the three months to April, with just seven per cent reporting a decrease.
“Energy costs are really beginning to bite,” said CBI director John Cridland. “Its raw material prices as well, particularly in the metals industry, and food input prices.”
However, Cridland pointed out that it is not all doom and gloom as manufacturers do appear to have been adding to their workforce in spite of the cost rises, and some companies have reaped the benefits of the weaker pound and strong market growth in Asia.