BRITAIN — More than half of medium-sized businesses in the United Kingdom said higher energy and fuel costs combined with supply chain pressures were the biggest challenges they face as the Middle East conflict continues, according to a survey by BDO. Two in five UK business leaders identified delays to materials, costs, stock shortages and suppliers folding as a top concern.

Almost a third of business leaders told BDO they are looking to prioritise UK-based suppliers, and 28% are considering moving production to the U.K. or closer to home.

Almost 60% of employers cited costs as their key priority as rising energy and supplier bills compound higher labour costs prompted by last year's increase in employer national insurance and increases in the legal minimum wage, according to a report from the Chartered Institute of Personnel and Development. The CIPD report noted that cost pressures have become the dominant concern for employers across medium-sized firms.

The number of vacancies in the U.K. for April was 711,733, down 7.7% from March and down 5.6% from April last year, according to a report from the Recruitment and Employment Confederation. The same report found that job postings for pilots, travel agents and train drivers fell the most, while postings for nannies and au pairs, sales executives and couriers increased. Neil Carberry, chief executive of the Recruitment and Employment Confederation, said: "The labour market is entering a more unpredictable phase after a solid start to the year."

Gross domestic product in Britain grew by 0.3% in March, according to figures from the Office for National Statistics. The Iran war began on the final day of February.