UK business surveys point to Bank of England rate rise in December The flash purchasing managers’ index published on Tuesday by IHS Markit and the Chartered Institute of Procurement and Supply showed that almost two-thirds of private sector companies reported rising costs in November. This indicates the steepest rate of input price inflation in more than 20 years, driven by higher wages and bills for fuel, energy and raw materials. But despite supply shortages and rising price pressures activity remained strong with output across the services and manufacturing sectors virtually unchanged from October’s reading of 57.8, signalling a healthy rate of expansion. “A combination of sustained buoyant business growth, further job market gains and record inflationary pressures gives a green light for interest rates to rise in December,” said Chris Williamson, chief business economist at IHS Markit, adding that the data pointed to “a welcome pick-up in GDP growth after the slowdown seen in the third quarter”.