The Governor of the Bank of England arrives in Hull to address the business community this week, with pressures on prices a major worry for many.
Rising interest rates to combat inflation, increasing raw materials costs, pay settlements and finance costs are all adding up to what has been described as a “torrid time for firms” - with the war in Ukraine bringing more challenges to supply chains.
Andrew Bailey will speak at a Hull and Humber Chamber of Commerce event on Friday, with the results of first quarter analysis just published.
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Nationally, the British Chambers of Commerce QES results for Q1 2022 – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – shows inflationary pressures on firms reaching levels never previously recorded in its 33-year history.
And it was borne out locally with cash flow down dramatically and profit expectations also taking a hit in the survey work, despite home sales and orders up on the previous quarter.
Exports were also up on the last quarter of 2021, with both sales and orders on the increase, as employment also bounced back.
But cashflow dropping 60 points to -4 and profit expectations down 11 points to -9 has stifled the optimism generated on activity.
David Hooper, Hull and Humber Chamber of Commerce external affairs director, said: “These results for the first quarter of 2022 are quite stark and demonstrate that businesses are under increasing pressure from almost every direction at the moment.
“Steep increases in energy prices are headline news and are a major concern for business as rising interest rates, inflation, raw material costs, pay settlements and finance costs are all adding up to a fairly torrid time for firms”.
Mr Bailey, who addressed The Waterline Summit virtually in late 2020, will join the Chamber at the Mercure Hull Grange Park Hotel for a breakfast event.
Appointed in early 2020, the former chief executive of the Financial Conduct Authority succeeded Mark Carney.
It was a return to the Bank of England, having served as chief cashier for seven years - a period in which he intervened in the huge crash of 2008 to ensure Icelandic fishermen could still be paid to keep the Humber’s seafood sector afloat.
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