Agents' Summary of Business Conditions - January 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 January 2005

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.