Inflation induced by the global pandemic and the war in Ukraine has caused global energy uncertainty and has thus deeply impacted businesses. Savanta’s UK Business Tracker gives us a glimpse into the current woes of UK businesses and a snippet of what challenges they face in the coming months.
According to our Business Tracker, inflation and rising energy prices are areas of concern for businesses. 73% of businesses state that inflation has had a significant impact. Businesses also see this as a long-term issue with 86% stating that inflation will impact their business negatively. Global energy markets have been in turmoil since the easing of the pandemic, with the ongoing war in Ukraine exacerbating these tensions. Currently, 61% view that their spend on energy will increase significantly compared to beginning of 2021.
These issues will continue to affect the way UK businesses operate and their pricing structure. Inevitably, this will also affect their customers and the demand for their services.
Effects of these challenges
Inflation affects how much businesses charge for their services and as a result may cost them customers. 53% of businesses have seen a decline over the demand of their services and a 23% increase since January 2022, showing that businesses are increasingly feeling the bite as customers are continue to tighten their belts in preparation for a tough winter.
Read more on their website.