UK Food Manufacturers Lift Q2 Confidence to -31% as 72% Prepare Consumer Price Rises
Updated
Updated · The Grocer · Aug 20
UK Food Manufacturers Lift Q2 Confidence to -31% as 72% Prepare Consumer Price Rises
1 articles · Updated · The Grocer · Aug 20
Summary
-31% sector confidence in Q2 marked a partial rebound from Q1’s record-low -64%, but left UK food and drink manufacturers in negative territory for a ninth straight quarter.
3.8% average cost growth over the past year — spanning labour, energy and ingredients — drove the weak mood, while more than a third of firms said the Middle East conflict had lifted costs by 5%-10%.
72% of manufacturers said they will need to raise consumer prices next year after 60% had so far absorbed the pressure, which the Food and Drink Federation called untenable.
SMEs improved to -9% confidence after being among the hardest hit in Q1, while large businesses stood at -25% and 75% said conditions were unchanged from the prior quarter.
56% of firms want budget measures to cut energy costs and 50% want an SPS deal with the EU, as the FDF warned weak confidence is stalling investment in skills and R&D.