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Trade News Archive April 08 March 08 February 08 January 08
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25th April 2008
Wholesalers could be hit by rising manufacturing costs
The rising cost in manufacturing could harm the prospects of wholesalers and retailers, it has been claimed.
According to a Confederation of British Industry (CBI) study, 50 per cent of manufacturers claimed that their unit prices have increased in the last few months.
Ian McCafferty, chief economic advisor of the CBI, claimed the costs incurred by the businesses were likely to be passed on to the consumer.
"Fears of slowing demand alongside rising prices have become a reality in the manufacturing sector over the past quarter," he said.
"Manufacturers are being forced to pass on higher costs to customers by increasing prices, and are no longer able to absorb continuous cost increases into their profit margins," Mr McCafferty added.
The CBI study also revealed that a number of manufacturers were not optimistic of costs improving in the near future, with a balance of +34 per cent predicting a rise in rates over the next three months.
(c) 2008 Adfero Ltd
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