British Food and Beverage Manufacturing Declined Last May

Food and drink manufacturing output in the UK dropped for the first time in 10 months in May, according to a survey from Lloyds Bank. The sector tracker provided by Lloyd’s Bank showed that input costs increased at a record rate, forcing producers to raise prices at an unprecedented level.

May’s decline in output was attributed to slower demand and supply disruptions, according to the tracker.

According to the Tracker’s Suppliers’ Delivery Times Index, a third of food and beverage manufacturers said supply chain problems have worsened in the last three months, with the most widespread delays occurring in that period. 

Food and beverage producers, according to the study, continued to battle input cost inflation.

The majority of the firms’ primary inflationary pressures came from expenses related to energy, fuel, raw materials, and pay. Food and beverage producers were particularly affected by rising agricultural commodity costs, including oil, wheat, and fertilisers as a consequence of the ongoing conflict in Ukraine.

In May, food and drink manufacturing sector output price inflation was the most rapid of all 14 industries tracked, with its highest Output Prices Index reading in 22 years.

News Credits: UK Food and Drink Manufacturing Output Contracts – Food Manufacture 

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