78% Of Entrepreneurs Fear The Threat Of Price Growth

The price of raw materials, inflation and labor costs are the main threats that concern entrepreneurs, who believe that these factors can negatively alter the evolution of their economic activity, according to the Study on Business Climate in Spain presented by the Chamber from Spain and prepared by Sigma Dos.

Thus, 86.3% consider that the costs of energy and raw materials are going to become more expensive to some extent, 78.2% that there will be more inflation and 63.2% that labor costs will increase. On the contrary, 65.9% believe that there will be an improvement in employment, half that consumption will do so and 47% business investment in what the president of the Chamber, José Luis Bonet, calls “optimism”, but with caution .

Specifically, the high prices of energy and raw materials, the main identified difficulty faced by most companies (47.5%) in our country. It is followed by labor costs (24.9%) and low demand (21.9%). At the time of the survey, only 20.6% of companies acknowledged having supply problems. Finally, 4.1% claimed not to have any difficulties.

The rise in prices has been a tonic during the present 2021. Between the base effects and the debate on whether it is transitory or not, this inflation, marked by energy products, reaches a year-on-year increase of 4% until September , double the amount that Brussels considers controlled inflation and the highest figure recorded since 2008, according to the INE. In addition, production costs maintain their upward trend, some companies have problems filling positions and bottlenecks continue to exert pressure in certain sectors, with demand after the economic reopening that continues to exceed supply.

Prospects for the future
At a general level of the Spanish economy, companies in the industrial sector are the most optimistic , with forecasts of an improvement in economic activity, employment, consumption and investment. From the point of view of costs, companies in all sectors expect a negative evolution, highlighting the negative balance of those belonging to the commercial sector in terms of the evolution of the costs of raw materials and energy.

It is precisely the latter, the high prices of energy and raw materials, the main identified difficulty faced by most companies (47.5%). It is followed by labor costs (24.9%) and low demand (21.9%). At the time of the survey, only 20.6% of companies acknowledged having supply problems. And 4.1% claimed not to have any difficulties.

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