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British Council survey points to slowdown in economies
30/10/2000



New research conducted on business leaders in August indicates that inflation is set to match or rise above 2000 levels next year.

The survey of 300 members of the British Council also found that over three-quarters of them believe that recent high U.S. economic growth will moderate next year. Almost two-thirds see global growth slowing from the 2000 rate. The underlying factors have been identified variously. Many leaders think that increased energy prices are taking their toll. Nearly one in three members claimed that higher oil prices had an impact on their businesses. A majority of members said they were unable to pass higher energy costs on in their product prices. Labour markets remain difficult as well, with some high staffing costs to bear, but a minority of members believed that personnel issues would improve next year. Additionally, three quarters of the surveyed leaders claimed their ability to raise prices without impairing business had not improved over the last year. And hope is not at hand from the Euro either. Some two fifths of members predicted that the Euro will fall further over the next six months, although a quarter think that some form of currency recovery is likely.