Rising fuel costs and supply disruptions placed growing pressure on businesses across the economy in early 2026.
Cost pressures emerged as one of the fastest-rising concerns among employers, particularly for transport-reliant, regional and smaller businesses. Reports of cost pressures increased between March and mid-April, climbing from under 10% of employers to almost 30%.
The sharpest increase was recorded in the Transport, Postal and Warehousing industry, where concerns about costs changed from 13% to 43% of employers. Large increases were also reported across Wholesale Trade, Retail Trade and Manufacturing, suggesting rising operating costs are becoming a broader challenge across both goods and services producing industries.
Around two-thirds of surveyed employers said they had already been impacted by rising fuel costs and supply disruptions, with most reporting moderate impacts. However, one in 10 employers said the effects had been severe, reflecting the impact of higher transport and input costs on business operations.
At the same time, concerns about weak demand became more prominent again in late April, indicating that rising costs may increasingly be flowing through to customers and overall business activity.
Despite changing business conditions, recruitment and retention difficulties remain an ongoing structural challenge, particularly for employers actively hiring or struggling to fill vacancies.
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