BICS weighted Scotland estimates: data to wave 67

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 67 businesses were asked about prices in the month of September 2022. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 3: In Wave 67, 49.8% of businesses reported that the prices of materials, goods or services bought in September 2022 had increased from the previous calendar month. In contrast, only 19.2% of businesses 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, 60, 63, 65 and 67

Of currently trading businesses, 49.8% reported an increase in the prices of materials, goods or services bought in September 2022 compared with August 2022, down from 57.4% reported between July 2022 and August 2022. For prices sold, there was also a decrease over the same period – 19.2% reported an increase in the prices of materials, goods or services sold in September 2022 compared with August 2022, down from 25.1% reported between July 2022 and August 2022. 

In the latest period, the industry sectors with the highest proportion of businesses reporting increases in prices of materials, goods and services bought were Arts, Entertainment & Recreation (60.5%) and Transport & Storage (59.1%).

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 (38.2%) and Manufacturing (28.3%).

In Wave 67, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced. Over three quarters 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 (62.8%), passing on price increases to customers (34.4%) and having to change suppliers (15.7%).

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

Figure 4: In the period 3 October to 16 October 2022, almost half (46.9%) 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 67

In Wave 67, businesses were asked what their expectations were for the prices of goods or services sold in November 2022, and the factors causing the businesses to consider raising prices.

One third (33.3%) of businesses not permanently stopped trading reported that they were expecting to increase prices in November 2022. The top three factors reported by businesses for these expected price increases were energy prices (49.3%), raw material prices (36.5%), and labour costs (32.8%).