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Demand grows, but rising costs squeeze firms as output falls

Businesses are struggling to meet stronger demand while costs rise and output contracts, according to Business Daily Africa (direct).

By Teqwah Desk05 Oct 22:02Updated 05 Oct 22:021 min read

Demand grows, but rising costs squeeze firms as output falls — Photo: Business Daily Africa (direct)

Key takeaways

Demand is growing, but firms are struggling to keep pace.
Rising costs are squeezing businesses while output contracts.
Whether output can recover to meet demand is the key development to watch.

Stronger demand is not translating into higher output for firms. Businesses are struggling to keep pace even as demand grows, with rising costs adding pressure, according to Business Daily Africa (direct).

The report describes a difficult combination: more demand, higher costs and falling output. Rather than expanding production to match demand, firms are seeing output contract.

For business readers, the contrast is the central point. Growing demand alone does not tell the whole story of how firms are performing. Here, it sits alongside cost pressures and a struggle to deliver enough output to keep up.

The next development to watch is whether firms can increase output to meet that demand—and whether the pressure from rising costs eases.