UK | Input shortages continue to escalate
Input shortages were the key theme of this week’s business surveys. Manufacturers continue to struggle with global component shortages, while producers and firms in the services sector reported problems finding labour. While activity growth remains strong, stock levels have fallen to record lows.
What you will learn:
- Component shortages may start to ease through H2 2021, but problems will not likely be fully resolved until 2022.
- The labour market situation is more nuanced and there are clearly some serious sector-specific issues. But the impending
end of the furlough scheme should ease some of the frictions that have become apparent in the services sector in recent months. - With no ONS releases published this week, business surveys took centre stage.
Tags:
Related Services
Post
What we learned, and didn’t, from Trump’s executive orders
President Donald Trump signed a slew of executive orders related to immigration, trade, and the federal government workplace, but these actions were widely anticipated and warrant only minimal changes to the baseline.
Find Out More
Post
UK Labour market data woes show the importance of nowcasts
We think that valid concerns about the quality of data from the UK's Labour Force Survey (LFS) make it virtually unusable at present. Considering it will likely take another two years to fix the problems, this poses a major headache for policymakers and economists alike.
Find Out More