UK business costs rise at record pace in April
The latest PMI data shows British input prices rising at the fastest rate in 28 years. While economic activity grew in April, soaring energy costs pose risks.
S&P Global Inc reported that input costs for companies in the United Kingdom rose at a record monthly pace in April. The Flash UK Composite Purchasing Managers Index (PMI) input price gauge hit its highest level since 2022, fueled by regional instability involving Iran. This surge signals a potential return to high inflation, complicating the Bank of England's path toward interest rate cuts.
### Energy Costs Drive Record Price Spikes The composite PMI, which tracks the manufacturing and services sectors, rose to 52.0 in April from 50.3 in March. This outperformed the 49.9 reading predicted by a Reuters poll of economists. However, the data showed the largest monthly increase in input prices since records began 28 years ago. Official data also showed the second-biggest month-on-month increase in factory input costs since records began in 1984, corroborating the PMI findings.
