The March UK economic review data make worrying reading for business leaders and physical retailers.

Internet business continues to boom in the UK: according to new ONS figures, the sector is still growing at 6% going forward. And whereas in 2008, 58% had bought online, in 2009 the penetration leapt to 70%.

But High Street retail sales are only recovering slowly from the depths recently seen – and with increasingly eroded margins.

And the same problem afflicts UK manufacturers. Production cost inflation accelerated forwards to 4.1% in the last period – showing even now we are still too expensive as a producer nation. While the poor Sterling performance has pushed up the price of raw materials for those manufacturers by even more at 7%.

So: inflation in the pipeline, less market share for exports, and less profit for investment in growth among our production base.

Apart from that, the Ministry of Business Innovation & Skills is right on top of the problem.