Small and medium firms' overheads at all-time high

Input costs for small and medium-sized construction firms increased in the last quarter to their highest ever level.
According to the PKF SME Index, the continuing rise in the price of steel, oil, glass, bricks and other raw materials pushed input costs up from an index score of 66.8 in the first quarter, to 78.3 in the second quarter.
However, the output, new orders and employment indices also increased.
PKF partner Stuart Barnsdall said: "The success of any business is determined by its ability to achieve sustainable growth and profitability. If these steep increases in costs cannot be passed on to the customer, margins will fall and greater levels of activity will simply increase financial risk."