British economy retains upward momentum (Part 2)

Inflationary pressure is strong in the industrial sector, where manufacturers are suffering from rising raw material costs, according to BCC price pressures is now the highest since the second quarter of 1997 onwards.

According to the survey, inflation has emerged as the biggest cause of concern for many companies. Companies from both industrial and the services sectors are under pressure mainly by rising raw material costs, which increases opportunity for profit and could weaken further investment.

Firms in the country have become slightly more optimistic about their prospects compared to the previous quarter, although their confidence in turnover and profits remained relatively low compared with levels in the last three years.

The latest quarterly survey by the British Chamber of Commerce covers more than 7,200 companies in the country and was conducted between November 7 and November 28, 2016.