U.K. Businesses Hit by Brexit-Induced Fall in the Pound

The British Chambers of Commerce say the pound's decline since the U.K. voted to leave the European Union is increasing costs and tightening margins for British companies.

Author:: Edward Hardy
Publish date:: Feb 6, 2017 5:51 AM EST

The British Chambers of Commerce said on Monday that the pound's decline since the country voted to leave the European Union in June is increasing costs and tightening margins for U.K. companies.

Nearly half of the 1,500 firms surveyed in the BCC poll said that the fall in the pound is having a negative impact on U.K. sales margins, while 25% said it was having a positive impact on export margins. A smaller group, 22%, said there has been a negative impact on export margins since the vote to leave.

"Our survey shows that inflation is going to be an important concern for businesses over the coming year. While inflation rates aren't high by historical standards, they are still putting increasing pressure on companies. Rising costs are squeezing margins, and forcing many firms to increase the prices of their goods and services," said Adam Marshall, BCC director general.