UK | Input shortages continue to escalate

Input shortages were the key theme of this week’s business surveys. Manufacturers continue to struggle with global component shortages, while producers and firms in the services sector reported problems finding labour. While activity growth remains strong, stock levels have fallen to record lows.

What you will learn:

• Component shortages may start to ease through H2 2021, but problems will not likely be fully resolved until 2022.
• The labour market situation is more nuanced and there are clearly some serious sector-specific issues. But the impending
  end of the furlough scheme should ease some of the frictions that have become apparent in the services sector in recent months.
• With no ONS releases published this week, business surveys took centre stage.