BICS weighted Scotland estimates: data to wave 89

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 89 businesses were asked about prices in the month of July 2023. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 2: In Wave 89, 27.7% of businesses reported that the prices of materials, goods or services bought in July 2023 had increased from the previous calendar month. Over the same period, 10.6% of businesses reported that they had increased the price of goods or services sold.

Estimated share of businesses experiencing increased prices. Businesses currently trading - with 10+ employees and a presence in Scotland. Applicable waves 18 to 89.

Source: BICS Weighted Scotland Estimates – Wave 89 from the Scottish Government. For Figure 2 data see tables ‘PricesBoughtChange’ and ‘PricesSoldChange’.

Of currently trading businesses, 27.7% reported an increase in the prices of materials, goods or services bought in July 2023 compared with June 2023; a lower share than the previous month (32.2%) and is the lowest share reported since the peak of 58.8% in March 2022.

In the latest period, the industry sector with the highest proportion of businesses reporting increases in the prices of materials, goods and services bought was Accommodation & Food Services (46.0%) – down from 58.4% in the previous month.

Of currently trading businesses, 10.6% reported an increase in the prices of materials, goods or services sold in July 2023 compared with June 2023; a lower share than the previous month (13.6%) and is the lowest share reported since the peak of 27.9% in April 2022.

In the latest period, the industry sector with the highest proportion of businesses reporting increases in the prices of materials, goods and services sold was Construction (16.3%).

In Wave 89, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced.

Figure 3: An estimated 78.7% of businesses had been affected by general price increases in some way; the top three impacts reported by businesses were having to absorb costs (61.1%), passing on price increases to customers (32.7%) and having to change suppliers (18.1%).

Estimated share of businesses by impact of recent price rises. Businesses not permanently stopped trading - with 10+ employees and a presence in Scotland. Wave 89 - 7 August to 20 August 2023.

Source: BICS Weighted Scotland Estimates - Wave 89 from the Scottish Government. For Figure 3 data see table ‘PriceRisesAffected’.

Businesses were also asked if they had been affected by recent increases in energy prices. In the period 7 August to 20 August 2023, 44.5% 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).

In Wave 89, businesses were asked what their expectations were for the prices of goods or services sold in September 2023, and the factors causing the businesses to consider raising prices.

An estimated 16.3% of businesses were expecting to increase prices in September 2023, lower than the previous month (23.6%). The top three factors reported by businesses for these expected price increases were labour costs (32.7%), energy prices (27.8%) and raw material prices (23.1%).