Businesses brace for profit squeeze in 2011

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Businesses are cautious about their profit outlook for the next 12 months, with the majority expecting an increase in costs but very few expecting to recoup these through higher prices.

The squeeze on UK firms is expected to be markedly worse than elsewhere, according to KPMG’s new Global Business Outlook study.

The study found that 88% of service firms around the world expect input costs to increase, or at best remain static, over the coming year. In contrast, just one fifth (20%) of services firms and less than a third of manufacturers (32%) expect to be able to command higher prices for goods and services this time next year.

Increases in raw materials prices, competitive pressures, mounting energy costs and rising inflation were all cited in the study as contributing factor...

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About Gina Dyer

About Gina Dyer

I've been a journalist for four years, writing on a wide variety of topics from business and finance to travel, culture and celebrities. I began my career as an editorial assistant for Palladian Publications, a B2B publisher specialising in technical magazines for professionals in primary industries. I later moved into consumer magazines as a staff writer for French Magazine, a monthly travel publication aimed at Francophiles, and was part of the launch team for The Traveller in France, a quarterly magazine produced for the French tourist board. I was also a regular contributor to online travel portal, and later worked with customer publishers Future Plus as a freelance production editor, before joining Sift Media in January 2009. I am currently Deputy Editor of


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