Rising costs are hitting business across the 海角视频 even as their activity levels continue to recover after the pandemic, the latest NatWest PMI surveys of 海角视频 businesses have shown.
While business reported that output and employment levels rose across the country, cost inflation also rose to record highs in almost all areas.
The PMI survey tracks the monthly change in the output of goods and services across the private sector, with any reading above 50 showing growth.
Rates of business activity growth rose in all regions and nations monitored by the survey in October. Wales topped the rankings for the second month running with an index of 61.5 ahead of London (60.5).
There was another broad-based rise in employment in October., with rates of job creation fastest overall in the North West and London.
But NatWest said there was a "universal acceleration" in rates of input cost inflation across the 海角视频's nations and regions in October., reaching record highs everywhere except the West Midlands. It said firms in Northern Ireland recorded the strongest overall cost pressures.
NatWest added: "All regions saw further sharp increases in average prices charged for goods and services in October. Rates of inflation slowed only in the North West and Scotland, but even here they stayed close to their recent peaks. Northern Ireland and Wales recorded the steepest rises in output prices respectively, and were two of seven areas where rates of inflation hit all-time highs. "
Businesses across the 海角视频 remained upbeat about activity for the year ahead, with Yorkshire & Humber the most optimistic area.
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Sebastian Burnside, NatWest chief economist, said: "October's results can be described as a mixed bag. Signs of a pick-up in activity and employment growth across many areas have been somewhat overshadowed by sky-rocketing costs faced by businesses in all parts.
"One positive is that activity levels continued to recover across every region and nation at the start of the fourth quarter, albeit with some carrying more momentum than others.
"We can also take encouragement from a sustained broad-based rise in employment, as firms look to rebuild workforces and expand capacity in line with strengthened demand. However, businesses are having difficulty filling vacancies due to a tightening jobs market, which is not only holding back activity in some cases and contributing to rising backlogs of work, but also pushing up wages.
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"When factoring in the surging prices of energy, raw materials and transportation, this has resulted in a cost environment unlike anything we've seen for at least two decades. Firms in almost every region and nation recorded unprecedented increases in their operating expenses in October.
"These strong inflationary pressures, combined with related supply chain issues, have weighed on business confidence, which has seen a setback in the majority of areas in October. Still, firms generally remain positive about growth prospects in the coming year.”