What are the new features of the UK economic recovery?
(a) The cost of bread has risen, and higher prices have reduced demand and reduced supplier profits? According to the UK Guardian, demand for bread in the UK market has fallen and costs have risen. British people breakfast and lunch, bread is one of the common food on the consumer shopping list, Mintel Research sampling statistics, the UK sliced bread sales fell, bread rolls and fresh bread sales also fell. Toast, a popular food for takeaway breakfasts or lunches, has also seen sales decline. Rising prices have seen demand fall further, squeezing suppliers. In the last year or so, the price of bread in the UK has risen by around 4%, with raw material wheat and other ingredients increasing in price. The rising cost of bread and higher commodity prices have made bread merchants less profitable. According to the UK's Agriculture and Horticulture Development Board, the price of wheat used to make bread has risen 24% in the past two years, with the fall in sterling following Brexit, higher demand for wheat, higher animal feed and higher fuel costs. The UK market imports some of its bread wheat from Germany and Canada, and a 10% fall in the pound has seen UK wheat prices rise. Although UK farmers have increased wheat planting, supplies have stopped in the recent wet weather. UK bakeries are facing rising costs and falling demand. (ii) UK factory output rises for fifth month as worker shortages push up wages. A weaker pound and stronger global economic recovery have pushed UK factory output up for a fifth consecutive month since September. The improvement in the manufacturing sector suggests that the UK economy has continued its slow recovery since the beginning of the year. According to the Economic and Social Research Institute, the UK economy grew faster than expected, with manufacturing output increasing. Worker shortages pushed up wages, and in the third quarter, the UK trade deficit widened by £3 billion, the weak pound pushed exports, demand for manufacturing output grew, and the recovery in manufacturing strengthened with strong growth in automobiles and medical equipment, however, commercial housing slumped. In the UK trade market, imports of machinery, fuel and metals grew and aircraft imports fell. Over a year since the UK referendum, the pound has fallen about 10% cumulatively against the dollar, British goods are cheaper in the world market, the UK's goods and services deficit was lower in September than in August, and the UK needs to balance international trade once again, with a weaker pound and slumping domestic demand.