The latest release of the Business Insights and Conditions Survey (BICS) provides valuable information on the challenges faced by UK businesses and their impact on the economy. Conducted through a voluntary fortnightly survey, the BICS captures real-time data on financial performance, workforce, trade, and business resilience. Here are the key findings from Wave 98, conducted from December 11 to December 24, 2023:
- Supply Chain Resilience:
- In November 2023, 73% of trading businesses with 10 or more employees reported obtaining materials, goods, or services from within the UK without disruption, showing a 6 percentage point increase from October 2023.
- Approximately 1 in 9 businesses (12%) faced challenges in sourcing materials within the UK or had to explore alternative solutions, maintaining stability from the previous month.
- Global Supply Chain Disruption:
- In November 2023, 5% of businesses with 10 or more employees experienced global supply chain disruption, with 27% attributing the disruption to a shortage of materials.
- Artificial Intelligence Adoption:
- As of mid-December 2023, 85% of businesses reported not using artificial intelligence (AI), with 83% having no plans to adopt AI in the next three months. These figures remained stable compared to late September 2023.
- Worker Shortages:
- Less than 1 in 10 businesses (9%) experienced worker shortages in mid-December 2023, with 43% of them unable to meet demands as a result. These figures remained broadly stable from late November 2023.
- Wage Changes:
- In November 2023, 7% of businesses reported an increase in employee hourly wages compared to October 2023, while 81% reported no change.
- Industrial Action:
- Approximately 4% of businesses were affected by industrial action in November 2023, the lowest proportion since this question was introduced in June 2022. Among affected businesses, almost a third (32%) reported a change in their workforce’s working location.
Key Trading Figures (Mid-December 2023):
- 95% of businesses reported trading, with 87% fully trading and 9% partially trading.
- 3% temporarily paused trading, and 2% permanently ceased trading.
The BICS provides a crucial snapshot of the challenges and dynamics within the UK business landscape, offering insights for policymakers and businesses alike. The next release is scheduled for January 11, 2024.