Almost half of businesses hit with price increases

Approximately half (48%) of businesses currently trading have reported that the prices of materials, goods, or services bought in April 2022 had increased from March 2022, while 23% reported that prices sold had increased across the same period.

According to the Office for National Statistics (ONS), the wholesale and retail trade, as well as the repair of motor vehicles and motorcycles industry, faced the largest rise in businesses reporting a decrease in turnover which reached 35%, up from 28% in March 2022.

Additionally, a third (33%) of businesses that have not permanently stopped trading in late May 2022 reported that its production and/or suppliers had been affected by recent increases in energy prices, up from 31% in late April 2022.

Among businesses still currently trading, 29% reportedly expect to increase the prices of goods or services sold in June 2022, with energy prices being reported as the main factor for businesses considering doing so at 38%.

Meanwhile, approximately a quarter (23%) of businesses currently trading reported that turnover in April 2022 was lower than in March 2022, rising 3% from the decrease reported between February and March 2022.

Additionally, 12% of businesses that have not permanently stopped trading said they had experienced difficulties in recruiting employees in April 2022, which is broadly stable with March 2022.

The accommodation and food industry reported the highest percentage of businesses reporting difficulties, hitting 31%.