- Consumer spending growth picked up.
- The housing market recovery continued, with demand outpacing supply.
- Export sales accelerated again; import growth was less pronounced.
- Investment intentions rose: the pace of decline in UK manufacturing investment eased, and services companies expected their investment spending to accelerate.
- Alongside strong export sales, domestic manufacturing production picked up.
- Construction output grew steadily.
- Business services turnover was strong, particularly in the professional and financial sector.
- Employment intentions strengthened, with business services recruiting vigorously, but there was still slack in the labour market.
- The degree of spare capacity in the manufacturing sector narrowed; capacity pressures in the services sector were unchanged.
- There were few signs of pay pressures, or any second-round effects from higher energy prices.
- Input price inflation stayed high, reflecting the impact of energy prices.
- Output price inflation rose; there was limited pass-through to consumer prices.
Published on
19 June 2006
Other Agents' summary of business conditions
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