Agents' Summary of Business Conditions - June 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 June 2005
  • Retail sales values were broadly flat in May compared with the previous month. Demand remained subdued for consumer durables. Growth of household spending on services may have eased a little, partly reflecting reduced spending on housing-related financial services.
  • House prices and transactions were stable. Estate agents now expect the housing market to remain fairly flat in the months ahead.
  • Export growth remained modest. Sterling’s recent weakening against the dollar improved margins for some contacts. Euro-area demand remained subdued.
  • Investment intentions were firm, underpinned by the need to raise efficiency and, in the service sector, a lack of spare capacity.
  • Manufacturing output growth seemed to have stalled and some contacts expected the level of output to fall slightly in the second half of the year.
  • Construction output growth was steady.
  • Service sector output growth may have slowed a little, reflecting lower growth of household spending on services.
  • Employment growth weakened a little, mostly due to an increased rate of job loss in manufacturing and weaker recruitment in the public sector.
  • Whole-economy capacity utilisation remained a little above normal.
  • Pay pressures continued to edge up.
  • Input price inflation was little changed.
  • Gradually increasing cost pressures were having little impact on consumer price inflation, partly because some retailers’ margins were squeezed by the slowdown in consumer spending. 

PDFAgents' summary of business conditions - June 2005

Other Agents' summary of business conditions

This page was last updated 31 January 2023