UK Economists Warn Higher Oil Prices Will Increase Factory Inflation
UK economists have raised concerns about the impact of rising oil prices on factory inflation. According to a report, the Confederation of British Industry's Industrial Trends Survey indicated that the headline orders balance remained weak in July, with a slight improvement from June. Pantheon Macroeconomics noted that while there was a modest improvement in manufacturing activity, it is likely a correction from June's weak performance rather than a genuine recovery. The consultancy warned that elevated energy costs and global trade uncertainties would continue to pressure manufacturers. Despite some optimism in business conditions, future output expectations remain subdued, and export orders have weakened. The report suggests that the recent surge in crude oil prices has not yet been fully reflected in manufacturers' pricing intentions, but it is expected to influence price expectations in the coming months. 
