UK factory costs surge at fastest rate since black wednesday amid energy shock

"The manufacturing input prices index jumped to 70.2 in March from 56 the previous month, its highest level since late 2022 and the steepest increase since October 1992, the month following Black Wednesday, when the pound's collapse drove up the cost of imports."

"Brent crude oil prices have risen by more than 40 percent since late February, reaching around $100 a barrel, adding significant cost pressure to energy-intensive industries."

"The composite PMI, which measures activity across manufacturing and services, fell to 51 in March, down from 53.7 in February and below analysts' expectations."

UK factory costs have surged at the fastest rate since Black Wednesday, driven by rising energy prices from the Middle East conflict. Production costs in British manufacturing accelerated sharply in March, while private sector growth slowed significantly. The Purchasing Managers' Index indicates a rapid deterioration in business conditions due to soaring oil and gas prices, disrupted supply chains, and weakening demand. The manufacturing input prices index reached its highest level since late 2022, with Brent crude oil prices rising over 40% since late February, adding pressure to the economy.

Read at Business Matters