Three in four Scottish firms plan price increases despite improving confidence

Summarised from The Herald's report · Updated 15 Oct, 08:20 · Archive

Almost three quarters of Scottish businesses expect to raise prices in the next three months.

Almost three quarters of Scottish businesses expect to increase prices over the coming quarter, according to a Quarterly Economic Indicator from the Scottish Chambers of Commerce and the Fraser of Allander Institute. This compares with 55% expecting price rises a year ago, while just 4% expect prices to fall.

Business confidence has improved, with 39% of firms reporting higher confidence than the previous quarter and 27% reporting a decline, producing a net balance of +13%. However, revenues, cashflow and profitability remain under pressure. Labour costs affect 70% of businesses, utility costs affect 56%, and fuel costs affect 52%, while inflation and taxation are joint leading concerns.

Charandeep Singh, chief executive of the Scottish Chambers of Commerce, said the results showed the link between the cost of doing business and the cost of living. 'These findings are a stark reminder that you cannot tackle the cost of living without tackling the cost of doing business,' he said.

Read the report

• Three in four Scottish firms expect price rises as costs pile on pressureScottish business confidence has returned to positive territory, but most firms still expect to raise prices amid continuing pressure on revenues and profitsThe Herald · 15 Oct, 04:30

In this story: Scottish Chambers of Commerce · Fraser of Allander Institute · Scotland · Charandeep Singh

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