- After allowing for seasonal influences, the monthly growth of retail sales values may have slowed a little, resulting in greater-than-normal price discounting around Christmas.
- Export growth slowed and imports continued to gain market share in the United Kingdom.
- Investment intentions may have levelled out. Manufacturing investment remained mostly targeted at achieving greater efficiency.
- Manufacturing output continued to increase, but growth eased slightly.
- Construction output growth declined a little and house builders reported falling sales.
- Activity in the housing market continued to weaken. Even so, many contacts expected a recovery in the first half of 2005.
- Service sector output growth declined slightly, partly related to the slowdown in the housing market.
- Private sector employment growth weakened.
- Capacity utilisation in the manufacturing and services sectors remained above normal. Skill shortages may have eased a little in the construction sector.
- There was a modest increase in pay settlements and wage growth, but pay pressures were not seen as a cause for concern by most contacts.
- Input price inflation may have peaked on account of recent falls in oil prices.
- Competitive pressures and overseas sourcing continued to keep in check manufacturers’ margins and prices.
Published on
21 January 2005
Agents' summary of business conditions - January 2005