Mark Veldon, UK Country Co-Leader and Partner & Managing Director at AlixPartners, comments on the Bank of England’s Decision Maker Panel (DMP):

“The latest data from the Bank of England's Decision Maker Panel (DMP) offers a mixed picture, particularly for those following UK dealmaking. Whilst it echoes the positive trends we have been seeing in the wider economy with inflationary pressures continuing to ease, businesses continue to navigate a tricky economic landscape. 

“Firms reported that output prices rose by an average annual rate of 4.2% in the three months to September, up from 4.0% in the previous period. While the gradual decline in output price inflation expectations remains stable at 3.6% for the year ahead, businesses are still being squeezed by raw material costs and supply chain pressures, limiting the extent of relief from lower inflation. 

“It's clear that we aren’t out of the woods yet. Wage growth remains high at 5.7%, which keeps inflationary risk higher than the Bank might like. Although business uncertainty has seen a slight decline, nearly half of firms (48%) report high levels of uncertainty around sales and pricing. This uncertainty may well have a knock-on effect on M&A, as few potential buyers will want to sign a deal on a company where sales are uncertain. Businesses and investors must stay adaptable as disruption continues to persist and tread cautiously on the path to recovery.”

For further information, please contact Mark Veldon, UK Country Co-Leader and Partner & Managing Director.