BICS weighted Scotland estimates: data to wave 61

Prices

The BICS asks businesses that have not permanently stopped trading (i.e. ‘Currently Trading’ or ‘Paused Trading’) about how the prices of materials, goods and services bought and sold compare with the previous calendar month. Note that in Wave 60 businesses were asked about prices in the month of June 2022. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 11: In Wave 60, 55.1% of currently trading businesses reported that the prices of materials, goods or services bought in June 2022 had increased from the previous calendar month. In contrast, only 21.8% of businesses currently trading reported that they had increased the price of goods or services sold.

Source: Office for National Statistics – BICS – Weighted Scotland Estimates – Wave 18 to 32, 34, 36, 38, 40, 42, 44, 46 ,48, 50, 52, 55, 57, 59 and 60

In the latest period, the industry sectors with the highest proportion of businesses reporting increases in prices of materials, goods and services bought were Manufacturing (68.5%) and Construction (66.8%).

In the latest period, the industry sectors with the highest proportion of businesses reporting increases in prices of materials, goods and services sold were Wholesale, Retail, Repair of Vehicles (32.8%) and Transport & Storage (30.1%).

In Wave 60, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced. Around three quarters (76.9%) of businesses not permanently stopped trading reported that they had been affected by general price increases in some way; the top three impacts reported by businesses were having to absorb costs (60.8%), passing on price increases to customers (33.9%) and having to change suppliers (13.4%).

Businesses were also asked if they had been affected by recent increases in energy prices.

Figure 12: In the period 27 June to 10 July 2022, over half (51.6%) of applicable businesses reported that they had been affected by the recent increase in energy prices in some way (suppliers and/or production were affected).

Source: Office for National Statistics – BICS – Weighted Scotland Estimates – Wave 60

The proportion of applicable businesses that reported they had been affected by the recent increase in energy prices in some way increased from 37.7% in the period 7 March to 20 March 2022 (Wave 52) to over half (51.6%) in the period 27 June to 10 July 2022 (Wave 60).

In Wave 60, businesses were asked what their expectations were for the prices of goods or services sold in August 2022, and the factors causing the businesses to consider raising prices.

Almost one third (30.2%) of businesses not permanently stopped trading reported that they were expecting to increase prices in August 2022. The top three factors reported by businesses for these expected price increases were energy prices (43.3%), labour costs (37.3%) and raw material prices (37.2%).