"The sting in the tail of this sharp upturn however is that price pressures gained momentum. Robust demand for inputs led to further price list adjustments at suppliers, with cost inflation accelerating to the strongest in a year-and-a-half. This fuelled the quickest increase in selling prices for 21 months as goods producers were comfortably able to pass additional cost burdens through to clients," De Lima explained.
"While firms were confident that demand will remain favourable in the coming months, some doubted that such strength could be sustained on a longer horizon. Several businesses were prepared to acquire inputs and rebuild inventories, but less willing to recruit additional workers as pressures on capacity remained mild for now," De Lima concluded. (WHY)