- 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.
Published on
16 May 2006
Agents' summary of business conditions - May 2006