Business insights and impact on the UK economy: 24 March 2022

• Nearly half (47%) of businesses currently trading reported an increase in the prices of materials, goods or services bought in March 2022, up from 39% in February 2022, which is the largest percentage point increase on this measure since comparable estimates began in June 2020; in comparison, the percentage of businesses who reported an increase in the prices of materials, goods or services sold increased from 17% to 18% over the same period.

• In early March 2022, a quarter (25%) of businesses not permanently stopped trading reported that their production and/or suppliers had been affected by recent increases in energy prices; with the accommodation and food service activities industry reporting the highest percentage, at 53%.

• More than half (53%) of businesses not permanently stopped trading reported that they had been affected by general price increases in some way; the top three impacts reported by businesses were having to absorb costs (35%), passing on price increases to customers (24%) and having to change suppliers (9%).

• Approximately 62% of the workforce were estimated to be working from a designated workspace and a further 21% to be using a hybrid model of working in late February 2022; both have been broadly stable since early February 2022.

• Of businesses not permanently stopped trading, 12% reported that vacancies were more difficult to fill in the last month, and 13% reported that they were experiencing a shortage of workers in early March 2022; these percentages were higher for businesses with 10 or more employees at 36% and 31%, respectively.

• Approximately one in seven (14%) businesses currently trading reported that they had difficulty getting the materials, goods or services they needed from within the UK, down 2 percentage points from February 2022; the construction industry reported the largest movement in percentage, with fewer businesses experiencing difficulties, falling to 22% in March 2022 from 33% in February 2022.

The data presented in this bulletin are the final results from Wave 52 of the Business Insights and Conditions Survey (BICS), which was live for the period 7 to 20 March 2022.

For questions regarding the last month, businesses were asked for their experience for the reference period 21 February to 20 March 2022. For questions regarding the last two weeks, businesses were asked for their experience for the reference period 21 February to 6 March 2022, although some businesses may have responded in relation to the point of completion of the questionnaire (7 to 20 March 2022). This is consistent with previous waves of the survey.

These dates should be kept in mind in relation to coronavirus (COVID-19) guidance as the estimates could be affected by both the location of the business and the date on which the business responded.

For experimental single-site weighted regional estimates up to Wave 49 (24 January to 6 February 2022), please see Understanding the business impacts of local and national restrictions, UK: February 2022.

Figure 1: Headline figures from the Business Insights and Conditions Survey

Notes:

1. Trading status and intra UK procurement: for presentational purposes, response options have been combined and/or removed.

2. Prices and intra UK procurement: businesses were asked for their experience for the reference period. However, businesses may respond from the point of completion of the questionnaire.

3. Prices: for presentational purposes, the data shows an increase to prices bought and sold compared with normal price fluctuations.

4. Data are plotted in the middle of the period of each wave.

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In early March 2022, 94% of businesses were trading, with 84% fully trading and 10% partially trading. Meanwhile, 5% of businesses were temporarily paused trading and 2% were permanently ceased trading. ​

Workforce status

In late February 2022, the proportion of the workforce estimated to be working from a designated workspace, that is, not from home, or using a hybrid model of working was 82%, having increased steadily from 72% in early December 2021.

Worker shortages

Of businesses not permanently stopped trading, more than one in eight (13%) reported they were experiencing worker shortages in early March 2022. This has remained broadly stable since the question was introduced in late October 2021. The percentage of businesses with 10 or more employees who reported worker shortages was higher, at 31%. However, this has fallen steadily from 37% in early November 2021.

The accommodation and food service activities industry continued to report the highest percentage of businesses experiencing a shortage of workers in early March 2022 (30%), up 2 percentage points from late February 2022. These shortages were partially driven by the food and beverage service sub-industry.

Of the 13% of businesses that reported a shortage of workers, the biggest effects of these shortages were:

• employees working increased hours (47%)

• businesses being unable to meet demands (47%)

• pausing trading of some of the business (13%)

• recruiting temporary workers (12%)

For businesses with 10 or more employees, the percentage of affected businesses that reported their employees were working increased hours was 61%.

Further response options broken down by industry and size band can be found in the accompanying dataset.

Vacancies

Businesses not permanently stopped trading were asked about their ability to fill vacancies in the last month compared with normal expectations for this time of year; 12% reported that vacancies were more difficult to fill.

In March 2022, the proportion of businesses with 10 or more employees that reported their vacancies were more difficult to fill was 36%. This was the same as in February 2022, but the percentage has fallen from 41% reported in November 2021.

Businesses that reported difficulties filling vacancies in the last month compared with normal expectations were asked for the reasons for these difficulties. Across businesses with 10 or more employees, the main reasons for the difficulties experienced were:

• low number of applications for the roles on offer (60%)

• lack of qualified applicants for the roles on offer (55%)

• business cannot offer an attractive pay package to applicants (30%)

Further response options broken down by industry and size band can be found in the accompanying dataset.

In February 2022, all nations within the United Kingdom scaled back or ended some coronavirus (COVID-19) restrictions, while England removed the legal requirement to self-isolate.

Of businesses not permanently stopped trading, 24% reported that they were providing regular COVID-19 testing, that is, testing their workforce on a routine basis, at least once a week. Approximately 22% of the workforce in these businesses received testing. These percentages have decreased from 33% and 26% respectively in early January 2022, and are the lowest percentages reported since late October 2021. Approximately one in nine (11%) businesses reported they were either collecting or intending to collect contact details for the purpose of contact tracing at their sites.

The percentage of businesses currently trading who reported that the prices of materials, goods or services bought in the last month had increased compared with normal fluctuations was 47% in March 2022. This was up from 39% in February 2022. This was the largest percentage point increase reported wave on wave since comparable estimates began in June 2020.

The number of businesses that reported the prices of materials, goods or services sold had increased compared with normal expectations continued to remain broadly stable, at 18%. However, there was some change by industry on this measure.

The manufacturing industry reported the largest percentage point increase in the last month in the proportion of businesses reporting that the prices of materials, goods or services sold had increased more than normal, from 28% in February 2022 to 43% in March 2022. This was closely followed by the transportation and storage industry that reported a 13 percentage point increase, from 5% to 18% over the same period.

Of businesses currently trading and who reported prices sold were applicable to their business, 16% reported an increase in demand for the goods or services they sold over the last month, up from 14% reported in February 2022. This compared with 71% of businesses that reported no increase in demand in March 2022, unchanged from February 2022.

Further breakdowns by industry and size band can be found in the accompanying dataset.

Approximately a quarter (25%) of businesses reported that their production and/or suppliers were affected by recent increases in energy prices, while 32% reported their business had not been affected. However, when excluding businesses with fewer than 10 employees, these percentages increase to 38% and 34%, respectively.

The accommodation and food service activities industry reported the highest percentage of businesses where their production and/or suppliers were affected by recent increases in energy prices, at 53%. This was partially driven by the food and beverage service sub-industry.

In early March 2022, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced.

More than half (53%) of businesses reported they were affected by the increase in prices in one or more ways.

The following industries reported the greatest percentage for the top three impact options selected:

• 49% of businesses within the transportation and storage industry and the manufacturing industry reported they had to absorb costs

• 44% of businesses within the manufacturing industry reported they had to pass on price increases to customers

• 19% of businesses within the manufacturing industry and the transportation and storage industry reported they had to change suppliers

Further response options broken down by industry and size band can be found in the accompanying dataset.

Approximately one in seven (14%) businesses reported that they were either not able to get the materials, goods or services they needed from within the UK, or had to make changes to their supply chains to do so. This is down 2 percentage points from February 2022.

The manufacturing industry continued to report the largest percentage of businesses that were experiencing difficultly procuring from within the UK in the last month at 28%. This was an increase from 16% in January 2022, and up from 25% in February 2022.

The accommodation and food service activities industry and the construction industry reported the second highest percentage of businesses experiencing difficulties, at 22% in March 2022. However, this was down from 27% and 33%, respectively, in February 2022.

Access to microdata

You can now access the BICS microdata for Waves 1 to 51 through the Secure Research Service (SRS). The BICS microdata for each wave are released on a rolling basis in the week following the publication of each wave. The microdata are made confidential and do not disclose information on any specific business.

Only researchers accredited under the Digital Economy Act are able to access data in the SRS. You can apply for accreditation through the Research Accreditation Service (RAS). You need to have relevant academic or work experience and must successfully attend and complete the assessed Safe Researcher Training.

To conduct analysis with microdata from the SRS, a project application must be submitted to the Research Accreditation Panel (RAP). To access the SRS, you must also work for an organisation with an Assured Organisational Connectivity agreement in place.

Coronavirus

Coronaviruses are a family of viruses that cause disease in people and animals. They can cause the common cold or more severe diseases, such as COVID-19.

COVID-19

COVID-19 is the name used to refer to the disease caused by the SARS-CoV-2 virus, which is a type of coronavirus. The Office for National Statistics (ONS) takes COVID-19 to mean presence of SARS-CoV-2 with or without symptoms.

Reporting unit

The business unit to which questionnaires are sent is called the reporting unit. The response from the reporting unit can cover the enterprise as a whole or parts of the enterprise identified by lists of local units.

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in our Business Insights and Conditions Survey (BICS) QMI, updated on 24 January 2022.

The BICS is voluntary, and the results are experimental.

The results are based on responses from the voluntary fortnightly BICS, which captures businesses' views on financial performance, workforce, prices, trade, and business resilience. The Wave 52 survey was live for the period 7 to 20 March 2022. For questions regarding the last two weeks, businesses were asked for their experience for the reference period 21 February to 6 March 2022. For questions regarding the last month, businesses were asked for their experience for the reference period 21 February to 20 March 2022. However, businesses may respond from the point of completion of the questionnaire (7 to 20 March 2022). The survey questions are available.

Coverage

The Monthly Business Survey (MBS) covers the UK for production and only Great Britain for services. The Retail Sales Index (RSI) and Construction are Great Britain-focused. Therefore, the BICS will be UK-focused for production-based industries but Great Britain-focused for the other elements of the economy covered. The industries covered are:

• non-financial services (includes professional, scientific, communication, administrative, transport, accommodation and food, private health and education, and entertainment services)

• distribution (includes retail, wholesale, and motor trades)

• production (includes manufacturing, oil and gas extraction, energy generation and supply, and water and waste management)

• construction (includes civil engineering, housebuilding, property development and specialised construction trades such as plumbers, electricians, and plasterers)

The following industries are excluded from the survey:

• agriculture

• public administration and defence

• public provision of education and health

• finance and insurance

For more information on the methodology of producing the BICS, such as weighting, please see the BICS QMI.

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the Business Insights and Conditions Survey (BICS) QMI.