CBI: U.K. Price Growth Expectations Fall to Nine-Month Low
2022.06.21 14:56
By Scott Kanowsky
Investing.com — U.K. manufacturers’ expectations for domestic price growth fell to a nine-month low in June, according to a new study from the Confederation of British Industry.
More than 200 manufacturers surveyed by the CBI now see prices rising by 58% over the next three months, down from estimates of 75% in May.
It was the lowest reading since last September – and comes despite fears in the U.K. that soaring inflation could last well into the rest of the year. Last week, the Bank of England predicted prices could spike by as much as 11% in October.
Meanwhile, the CBI’s survey showed manufacturing output growth is now forecast to slow in the next three months. However, those estimates remain above their long-run average.
“While manufacturing output is still being supported by a backlog of orders, growth appears to be softening. Stocks of finished goods are now seen as broadly adequate and we may be seeing the first signs that weaker activity is beginning to slow the pace of price increases in the sector,” said Anna Leach, Deputy Chief Economist at the CBI.
