BCC Survey: Most UK companies expect higher 2018 costs because of a weak GBP

In its latest survey conducted by the British Chambers of Commerce (BCC), a majority of the UK companies surveyed expect their costs to rise over the next year as a result of the depreciation in the pound.

Key Findings via Bloomberg:

“63 percent of firms anticipate price gains, compared to just 6 percent expecting them to decline. Sterling has dropped about 10 percent against the dollar since the U.K.’s vote to the European Union in June 2016 and the median forecast in a Bloomberg survey indicates it will likely fall further over the next twelve months.

Even so, 46 percent of the 1,300 companies surveyed by the BCC have taken no steps to manage currency risk, with smaller firms the least likely to have hedging measures in place.”

Adam Marshall, director general of the BCC noted: “Companies are clearly feeling price pressure from the depreciation in sterling. While businesses await answers on Brexit and a return to a stronger currency, they must take the necessary steps to prepare for potential risks.”