Agents' Summary of Business Conditions - May 2006

Published on 16 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.