UK companies shrink payment plans despite high inflation: Lloyds

London — UK companies are shrinking their plans for salary increases and employment, but as they try to manage the rapidly rising costs, nearly half intend to raise the prices they charge their customers, according to a Monday survey. Showed.

Figures from the monthly Lloyds Banking survey will give the Bank of England various signals about the sustainability of inflationary pressures and the extent to which they impede growth, as they take into account the widely expected rate hikes this week.

A record 49% of the 1,200 companies surveyed between January 4th and January 18th said they expect prices to rise from 45% in December.

However, the percentage expected to raise wages by 2% is well below the current inflation rate of 5.4%, dropping from 48% in December to a five-month low of 41%.

The number of planned salary increases of 3% decreased from 26% to 21%, and the share of those planning a 4% salary increase decreased from 14% to 12%.

“Companies remain cautious about pandemics and face challenges due to rising cost pressures, but many are raising prices accordingly,” said Lloyds Bank economist Han Ju Ho. Stated.

Overall confidence has declined since December and hiring intentions have been the lowest since August, but 46% of companies plan to increase staff over the next 12 months.

Private sector growth in the three months to January is April, reflecting the devastating waves of the Omicron incident in December and January on many businesses, according to a monthly survey by the British Industry Federation on Sunday. It has been shown to be the weakest since.