Agents' Summary of Business Conditions - May 2006

• Consumer spending growth may have started to stabilise following the volatility seen in recent months.
• The housing market recovery continued, but contacts were nervous about its fragility.
• Investment intentions picked up slightly; services firms expected to increase investment spending over the next six months.
• Domestic manufacturing sales were broadly unchanged on a year earlier, while export sales accelerated.
• Construction output accelerated.
• Growth in business services turnover picked up.
• Employment intentions were unchanged, with staff levels falling in manufacturing and rising in business services.
• Capacity pressures remained generally muted; only professional and financial services companies were experiencing significant difficulties.
• Pay settlements were similar to the levels seen last year, with little sign of upward pressure from employees following the recent energy price rises.
• Input price inflation stayed high, reflecting a further pass-through from energy prices.
• Output price inflation rose, but competitive pressures held down consumer price inflation.

Agents' summary of business conditions - May 2006

• Agents' scores (xlsx)
• Definitions for the Agents’ scores
• Response to consultation on changes to Agents' scores