Nearly half of British businesses expect Russia’s invasion of Ukraine to lead to lower sales, official data showed on Thursday, with a growing number saying rising energy and input prices are prompting them to curb investment plans.

Of the nearly 3,000 companies surveyed by the Bank of England in March, 48% said they expected the Russia-Ukraine war to hamper their performance in the coming year, with an average drop in sales of 3%.

More than a quarter of businesses were also worried about rising input costs, with a similar proportion worried about rising energy prices, up sharply from February, data from the National Bureau of Statistics showed on Thursday.

Jack Sirett, head of trading at global financial services firm Ebury, said businesses were going through a “perfect storm” with a slew of cost increases, including rising energy bills and national insurance contributions.

He added that “simply keeping the lights on will do more damage than usual for all businesses”.

The government on Thursday announced an energy security strategy to combat soaring prices and reduce reliance on Russian oil and gas.

But Stephen Phipson, chief executive of manufacturer group Make UK, said: “These projects cannot be delivered quickly, and with rising energy costs and businesses facing myriad other financial burdens, there is a pressing need for the industry to act urgently. Action. Government to lower energy prices in the short term.”

In the three months to March, businesses forecast average inflation to rise to 5% in the coming year from 4.6% in the previous three months, the highest level since records began in 2017, according to a monthly survey by a panel of policymakers. The Bank of England is run jointly with academics from Stanford and Nottingham Universities.

Businesses also reported widespread supply chain disruptions, absenteeism due to illness and trade difficulties.

More than a quarter of businesses experienced global supply chain disruptions in the past month, rising to 52% of manufacturers, according to ONS data.

More than one in five exporters also reported lower-than-normal levels of exports, with additional paperwork, higher shipping costs and new tariffs being the biggest challenges for exporters.

One in six businesses also said they paid sick leave for employees who contracted Covid-19.

Businesses have curtailed investment intentions amid high inflation, supply chain disruptions and deteriorating sales expectations, which could limit future growth in the economy and living standards.

Businesses in March expected investment to be 5.3% below normal in the second quarter, down from -1.3% the previous month, Bank of England data showed.

Separate official statistics show business investment, which has failed to grow since 2016, remains 9% below pre-pandemic levels in the final quarter of 2021.