Agents' Summary of Business Conditions - September 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 18 September 2006

Consumer spending growth remained reasonably firm.
The recovery in housing market transactions continued. The recent interest rate increase was not expected to dampen demand.
Export growth strengthened modestly, with signs of further recovery in euro-area demand.
Investment intentions rose a little further.
The level of manufacturing output continued to increase, with strengthening demand in domestic as well as overseas markets.
Construction output growth ticked up.
Service sector output growth was steady.
Employment intentions rose, but there remained some slack in the labour market.
Capacity pressures rose slightly in both manufacturing and services.
Pay pressures remained benign except in a few areas of specific skill shortages. But future pay negotiations were expected to be tougher.
Input price inflation levelled out, helped by a weaker dollar against the pound and lower fuel prices.
Manufacturing output price inflation continued to rise modestly and there was further pass-through to consumer goods prices.