Pricey oil will hit profit margins

Business profit margins in the UK are continuing to take a battering because of rising oil prices, according to the latest monthly business trend report from BDO. Despite the “positive […]

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By Vicky Ellis

Business profit margins in the UK are continuing to take a battering because of rising oil prices, according to the latest monthly business trend report from BDO.

Despite the “positive news” of rising UK output, the audit firm suggests high oil prices are likely to hit consumer spending power as well as business profit margins.

The report says businesses are still seeing the cost of raw inputs going up as the price of Brent crude oil continues to trade at over the $120 a barrel mark, while consumer price inflation is persistently above the Bank of England’s 2.0% target rate.