UK FACTORIES are being stung by record cost increases as the supply chain crisis continues to drag on, according to a closely watched survey released yesterday.
Prices for raw materials and crucial inputs used by British manufacturers accelerated at the fastest pace since IHS Markit and the Chartered Institute of Procurement and Supply (CIPS) started tracking the data 30 years ago.
The fiery cost increases are being driven by supply chains buckling under the weight of red hot demand from manufacturers generating severe mismatches between supply and demand.
A shortage in the raw materials market is "exerting massive upwards pressure on input" prices and pushing firms' costs "relentlessly" higher, warned Rob Dobson, director at IHS Markit.
Despite firms struggling to find materials to produce goods, IHS Markit and CIPS's PMI rose to a three-month high of 58.1 in November, up from 57.8 in October.
(c) 2021 City A.M., source Newspaper