Small firms raise prices to limit squeeze on profits

Small and medium-sized manufacturing businesses have had to raise their prices in order to cope with rapid growth in the costs they face, according to the Confederation of British Industry (CBI). Businesses are also less optimistic than they were in April, the last time the survey was completed. Plans to invest in machinery and buildings have also weakened, according to the CBI's survey results. A spokesman for the CBI said: "There is no doubt this is a challenging time for many small and medium-sized firms. Many are trying to stay on top of higher energy and raw material costs, and are finding it difficult to pass these onto customers through higher prices."

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