Bank of England MPC Survey - outlook for the next 6 months - March 2022

UKFT Members: Make your voice heard

UK Fashion and Textile businesses have been asked to contribute to the Bank of England’s Monetary Policy Committee (MPC) regular London meeting. For this session, the Bank are especially interested in inflationary pressures.

The BoE’s MPC meets 8 times per year to set the ‘bank rate’, otherwise known as the Bank of England base rate or the interest rate. The BoE can decide to keep the rate the same, raise it, or decrease it.

It is important that the BoE has an accurate and up-to-date understanding of the current market conditions, particularly at this crucial time, so we do encourage the UKFT network to complete this short survey. It should take approximately 15 minutes and will help ensure the voice of the UK fashion and textiles industry is heard.

The deadline for submissions is 28th March.

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* 1. Company Name

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* 2. Number of Employees

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* 3. Turnover

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* 4. Sector

Manufacturing

Retail

Services

Other (please specify)

Outlook for the next 6 months compared with the last 6 months

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* 5. Is your overall business confidence:

Higher

Same

Lower

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* 6. Do you expect growth to be:

Higher

Same

Lower

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* 7. Do you expect demand from UK customers to be:

Stronger

Flat

Weaker

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* 8. Do you expect export demand to be:

Stronger

Flat

Weaker

N/A

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* 9. Do you expect the number of people employed in your business to:

Rise

Stay same

Fall

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* 10. Do you expect to increase average pay per employee by:

Less than 0

0-2%

2-4%

over 4%

Less than 0

0-2%

2-4%

over 4%

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* 11. With 5 high, how serious are skill shortages:

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* 12. Do you expect to be able to increase prices in the next year:

More than 2%

0-2%

0 or less

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* 13. Do you plan to invest:

Same

Less

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* 14. If you have any comments to add please use the space below

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* 15. How have your average UK output prices changed (approximately in percentage terms) over the past 12 months? 1/3/21 - 28/2/22

100

Clear

i We adjusted the number you entered based on the slider’s scale.

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* 16. How do you expect your average UK output prices to change (approximately in percentage terms) over the next 3 months? 1/3/22 - 31/5/22

100

Clear

i We adjusted the number you entered based on the slider’s scale.

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* 17. How do you expect your average UK output prices to change (approximately in percentage terms) over the subsequent 4-12 months? 1/6/22 - 28/2/23

100

Clear

i We adjusted the number you entered based on the slider’s scale.

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* 18. How do you expect your average UK output prices to change (approximately in percentage terms) over the subsequent 13-24 months? 1/3/22 - 28/2/24

100

Clear

i We adjusted the number you entered based on the slider’s scale.

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* 19. How did the following affect your UK output prices over the past 12 months? (please tick one box per line)

	Major downwards effect	Slight downwards effect	No effect	Slight upward effect	Major upwards effect
UK labour costs	UK labour costs Major downwards effect	UK labour costs Slight downwards effect	UK labour costs No effect	UK labour costs Slight upward effect	UK labour costs Major upwards effect
Productivity - output per employee (increase would reduce costs)	Productivity - output per employee (increase would reduce costs) Major downwards effect	Productivity - output per employee (increase would reduce costs) Slight downwards effect	Productivity - output per employee (increase would reduce costs) No effect	Productivity - output per employee (increase would reduce costs) Slight upward effect	Productivity - output per employee (increase would reduce costs) Major upwards effect
Above target Consumer Price Inflation (CPI)	Above target Consumer Price Inflation (CPI) Major downwards effect	Above target Consumer Price Inflation (CPI) Slight downwards effect	Above target Consumer Price Inflation (CPI) No effect	Above target Consumer Price Inflation (CPI) Slight upward effect	Above target Consumer Price Inflation (CPI) Major upwards effect
UK utility costs	UK utility costs Major downwards effect	UK utility costs Slight downwards effect	UK utility costs No effect	UK utility costs Slight upward effect	UK utility costs Major upwards effect
Cost of raw materials, intermediate and finished goods	Cost of raw materials, intermediate and finished goods Major downwards effect	Cost of raw materials, intermediate and finished goods Slight downwards effect	Cost of raw materials, intermediate and finished goods No effect	Cost of raw materials, intermediate and finished goods Slight upward effect	Cost of raw materials, intermediate and finished goods Major upwards effect
Shipping/transport costs	Shipping/transport costs Major downwards effect	Shipping/transport costs Slight downwards effect	Shipping/transport costs No effect	Shipping/transport costs Slight upward effect	Shipping/transport costs Major upwards effect
UK sales volume	UK sales volume Major downwards effect	UK sales volume Slight downwards effect	UK sales volume No effect	UK sales volume Slight upward effect	UK sales volume Major upwards effect
Competitive pressures	Competitive pressures Major downwards effect	Competitive pressures Slight downwards effect	Competitive pressures No effect	Competitive pressures Slight upward effect	Competitive pressures Major upwards effect
Regulation (inc climate)	Regulation (inc climate) Major downwards effect	Regulation (inc climate) Slight downwards effect	Regulation (inc climate) No effect	Regulation (inc climate) Slight upward effect	Regulation (inc climate) Major upwards effect
- of which, Brexit	- of which, Brexit Major downwards effect	- of which, Brexit Slight downwards effect	- of which, Brexit No effect	- of which, Brexit Slight upward effect	- of which, Brexit Major upwards effect

Other (please specify)

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* 20. How do you expect the following to affect your UK output prices over the next 12 months? (please tick one box per line)

	Major downwards effect	Slight downwards effect	No effect	Slight upward effect	Major upwards effect
UK labour costs	UK labour costs Major downwards effect	UK labour costs Slight downwards effect	UK labour costs No effect	UK labour costs Slight upward effect	UK labour costs Major upwards effect
Productivity - output per employee (increase would reduce costs)	Productivity - output per employee (increase would reduce costs) Major downwards effect	Productivity - output per employee (increase would reduce costs) Slight downwards effect	Productivity - output per employee (increase would reduce costs) No effect	Productivity - output per employee (increase would reduce costs) Slight upward effect	Productivity - output per employee (increase would reduce costs) Major upwards effect
Above target Consumer Price Inflation (CPI)	Above target Consumer Price Inflation (CPI) Major downwards effect	Above target Consumer Price Inflation (CPI) Slight downwards effect	Above target Consumer Price Inflation (CPI) No effect	Above target Consumer Price Inflation (CPI) Slight upward effect	Above target Consumer Price Inflation (CPI) Major upwards effect
UK utility costs	UK utility costs Major downwards effect	UK utility costs Slight downwards effect	UK utility costs No effect	UK utility costs Slight upward effect	UK utility costs Major upwards effect
Cost of raw materials, intermediate and finished goods	Cost of raw materials, intermediate and finished goods Major downwards effect	Cost of raw materials, intermediate and finished goods Slight downwards effect	Cost of raw materials, intermediate and finished goods No effect	Cost of raw materials, intermediate and finished goods Slight upward effect	Cost of raw materials, intermediate and finished goods Major upwards effect
Shipping/transport costs	Shipping/transport costs Major downwards effect	Shipping/transport costs Slight downwards effect	Shipping/transport costs No effect	Shipping/transport costs Slight upward effect	Shipping/transport costs Major upwards effect
UK sales volume	UK sales volume Major downwards effect	UK sales volume Slight downwards effect	UK sales volume No effect	UK sales volume Slight upward effect	UK sales volume Major upwards effect
Competitive pressures	Competitive pressures Major downwards effect	Competitive pressures Slight downwards effect	Competitive pressures No effect	Competitive pressures Slight upward effect	Competitive pressures Major upwards effect
Regulation (inc climate)	Regulation (inc climate) Major downwards effect	Regulation (inc climate) Slight downwards effect	Regulation (inc climate) No effect	Regulation (inc climate) Slight upward effect	Regulation (inc climate) Major upwards effect
- of which, Brexit	- of which, Brexit Major downwards effect	- of which, Brexit Slight downwards effect	- of which, Brexit No effect	- of which, Brexit Slight upward effect	- of which, Brexit Major upwards effect

Other (please specify)

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* 21. To what extent are you able to pass through higher costs to prices?

	Unable to pass through to prices	Already passed through %	% over next 3 months	% over subsequent 4-12 months	% over subsequent 13-24 months
Labour costs	Labour costs Unable to pass through to prices	Labour costs Already passed through %	Labour costs % over next 3 months	Labour costs % over subsequent 4-12 months	Labour costs % over subsequent 13-24 months
Non-labour costs	Non-labour costs Unable to pass through to prices	Non-labour costs Already passed through %	Non-labour costs % over next 3 months	Non-labour costs % over subsequent 4-12 months	Non-labour costs % over subsequent 13-24 months

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* 22. Do you intend to pass through higher costs into prices primarily by

increasing the prices of existing goods/services without any change of specification

introducing new (versions) of your goods/services at higher prices

Other (please specify)

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* 23. Is it easier than normal to pass through higher costs to prices?

Yes

Please indicate reasons for your response here (including whether you are making increased use of indexation clauses in contracts to mechanically pass on higher costs in e.g. fuel, commodities or raw materials)

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* 24. What is your current net profit margin (pre-tax operating profit as % of sales)?

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* 25. How would you describe your current net profit margin on UK sales (pre-tax operating profit as % of UK sales)?

Significantly lower than sustainable

Slightly lower than sustainable

Around sustainable

Slightly higher than sustainable

Significantly higher than sustainable

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* 26. If you answered "significantly or slightly lower" to the above question, how long do you think it will take for your current UK net profit margin to return to sustainable levels?

Next 3 months

Next 4-12 months

Next 13-24 months

Beyond 24 months

Too uncertain to say

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* 27. If you answered "significantly or slightly higher" to the above question, how long do you think you will be able to maintain your current UK net profit margin?

Next 3 months

Next 4-12 months

Next 13-24 months

Beyond 24 months

Too uncertain to say

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* 28. If you plan to increase your profit margins, how will you achieve this over each time period? Please tick all boxes that apply

	Next 3 months (1/3/22- 30/5/22)	Next 4- 12 months (1/6/22 - 28/2/23)	Next 13-24 months (1/3/23 - 28/2/24)	Beyond 24 months (1/3/24 - )
Raise prices	Raise prices Next 3 months (1/3/22- 30/5/22)	Raise prices Next 4- 12 months (1/6/22 - 28/2/23)	Raise prices Next 13-24 months (1/3/23 - 28/2/24)	Raise prices Beyond 24 months (1/3/24 - )	Raise prices
Reduce employment	Reduce employment Next 3 months (1/3/22- 30/5/22)	Reduce employment Next 4- 12 months (1/6/22 - 28/2/23)	Reduce employment Next 13-24 months (1/3/23 - 28/2/24)	Reduce employment Beyond 24 months (1/3/24 - )	Reduce employment
Reduce unit - labour costs/ raise productivity	Reduce unit - labour costs/ raise productivity Next 3 months (1/3/22- 30/5/22)	Reduce unit - labour costs/ raise productivity Next 4- 12 months (1/6/22 - 28/2/23)	Reduce unit - labour costs/ raise productivity Next 13-24 months (1/3/23 - 28/2/24)	Reduce unit - labour costs/ raise productivity Beyond 24 months (1/3/24 - )	Reduce unit - labour costs/ raise productivity
Reduce other input costs	Reduce other input costs Next 3 months (1/3/22- 30/5/22)	Reduce other input costs Next 4- 12 months (1/6/22 - 28/2/23)	Reduce other input costs Next 13-24 months (1/3/23 - 28/2/24)	Reduce other input costs Beyond 24 months (1/3/24 - )	Reduce other input costs
Raise output	Raise output Next 3 months (1/3/22- 30/5/22)	Raise output Next 4- 12 months (1/6/22 - 28/2/23)	Raise output Next 13-24 months (1/3/23 - 28/2/24)	Raise output Beyond 24 months (1/3/24 - )	Raise output
Change mix of products/ services sold	Change mix of products/ services sold Next 3 months (1/3/22- 30/5/22)	Change mix of products/ services sold Next 4- 12 months (1/6/22 - 28/2/23)	Change mix of products/ services sold Next 13-24 months (1/3/23 - 28/2/24)	Change mix of products/ services sold Beyond 24 months (1/3/24 - )	Change mix of products/ services sold

Bank of England MPC Survey - outlook for the next 6 months - March 2022

UKFT Members: Make your voice heard

Question Title

* 1. Company Name

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* 2. Number of Employees

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* 3. Turnover

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* 4. Sector

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* 5. Is your overall business confidence:

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* 6. Do you expect growth to be:

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* 7. Do you expect demand from UK customers to be:

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* 8. Do you expect export demand to be:

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* 9. Do you expect the number of people employed in your business to:

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* 10. Do you expect to increase average pay per employee by:

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* 11. With 5 high, how serious are skill shortages:

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* 12. Do you expect to be able to increase prices in the next year:

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* 13. Do you plan to invest:

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* 14. If you have any comments to add please use the space below

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* 15. How have your average UK output prices changed (approximately in percentage terms) over the past 12 months? 1/3/21 - 28/2/22

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* 16. How do you expect your average UK output prices to change (approximately in percentage terms) over the next 3 months? 1/3/22 - 31/5/22

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* 17. How do you expect your average UK output prices to change (approximately in percentage terms) over the subsequent 4-12 months? 1/6/22 - 28/2/23

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* 18. How do you expect your average UK output prices to change (approximately in percentage terms) over the subsequent 13-24 months? 1/3/22 - 28/2/24

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* 19. How did the following affect your UK output prices over the past 12 months? (please tick one box per line)

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* 20. How do you expect the following to affect your UK output prices over the next 12 months? (please tick one box per line)

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* 21. To what extent are you able to pass through higher costs to prices?

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* 22. Do you intend to pass through higher costs into prices primarily by

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* 23. Is it easier than normal to pass through higher costs to prices?

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* 24. What is your current net profit margin (pre-tax operating profit as % of sales)?

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* 25. How would you describe your current net profit margin on UK sales (pre-tax operating profit as % of UK sales)?

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* 26. If you answered "significantly or slightly lower" to the above question, how long do you think it will take for your current UK net profit margin to return to sustainable levels?

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* 27. If you answered "significantly or slightly higher" to the above question, how long do you think you will be able to maintain your current UK net profit margin?

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* 28. If you plan to increase your profit margins, how will you achieve this over each time period? Please tick all boxes that apply

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* 29. Any other comments?