Christmas supplies at risk as driver shortages continue into next year

Liz Martins, an economist at HSBC, said: “The rain, pingdemic and other supply shortages appear to have put the brakes on growth.”

The Construction Products Association warned that shortages of timber, metals, electrics and paints could continue into 2022 as demand continued to affect supply. 

Noble Francis, the association’s economics director, said small sub-contractors and specialist contractors were the worst hit: “Large contractors and house builders have certainty of demand over the next 12-18 months and so can plan and buy in advance so they are less affected. “

Global shortages of commodities is pushing up the price of industrial metals, while forecasters said a crippling microchip shortage that has hit production of cars, consumer electronics and industrial machines in recent months will go on longer than expected.

UBS said the shortage was expected to last “well into 2022”, pointing at Covid-19 outbreaks in Malaysia, a major hub for chip packaging and testing, which has forced some carmakers to suspend production.

UBS said supply problems for carmakers should ease in the coming months as chipmakers allocate more capacity to the sector. 

However, analysts said this would be likely to come at the expense of manufacturers who make industrial robots and other machinery used in factories.

The bank said manufacturers were likely to stockpile chips in future to prevent a repeat the next time supply is affected.

Additional reporting: Ben Gartside