CBI: Firms need help to make it through summer
Firms might need further support before the autumn Budget to help tackle rising costs, according to a business group.
The CBI highlighted the near-term challenges that companies are facing, especially energy intensive firms.
A survey by the group found that growth in private sector activity including consumer services and distribution sales remained “steady” in the quarter to March, although growth in manufacturing output slowed.
Alpesh Paleja, the CBI’s lead economist, said: “While private sector growth seems resilient so far, near-term challenges are growing.
“Strong inflationary pressure is hurting businesses through higher costs, and is leading to an acute cost-of-living crunch for households. This will weigh on the economic outlook for this year.
“While the Chancellor announced support for low-income households in his spring statement, this should be kept under review in light of febrile pressures on living standards.
“To combat rising cost pressures, firms may also require further support prior to the autumn Budget, not least energy intensive firms.”
The report was based on a survey of more than 500 firms.
Press Association