Agents' Summary of Business Conditions - February 2005

We regularly publish a summary of reports compiled by our twelve regional Agents following discussions with at least 700 businesses across the UK every reporting period.

Published on 21 February 2005

Consumer spending growth continued to moderate.
Export growth slowed further and some contacts were concerned whether current volumes could be sustained in the months ahead.
Investment intentions remained firm, though there were downside risks should the economy slow.
Manufacturing output continued to grow modestly.
Construction output growth eased a little.
Estate Agents reported tentative signs of a pickup in housing market activity levels.
Service sector output growth was brisk, underpinned by demand for professional and financial services.
Private sector employment growth weakened slightly.
Capacity utilisation remained a little above normal.
Pay settlements edged higher. There were prospects of further modest increases in wage inflation in the year ahead.
Input price inflation may have peaked. Prices of materials were expected to remain at or slightly above current levels in 2005.
Output and consumer price inflation picked up a little, particularly in the service sector.