Agents' Summary of Business Conditions - December 2006

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 15 December 2006

Consumer spending growth increased; sales of household durable goods picked up further and car sales improved a little.
Activity in the housing market was unchanged.
Export growth slowed a little, mostly reflecting the weaker US housing market.
Investment intentions continued to strengthen.
Manufacturing output growth stabilised.
Construction output continued to grow strongly.
Service sector activity accelerated again; growth of consumer and other business services output was slightly firmer.
Firms’ employment intentions rose, but their current recruitment difficulties remained less than normal.
Capacity pressures intensified a little.
Pay growth rose slightly due to increased wage drift.
Input price inflation was steady. Higher prices of some metals and foodstuffs offset lower oil prices.
Consumer price inflation was unchanged.