Agents' Summary of Business Conditions - April 2007

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 17 April 2007
  • Consumption growth stabilised, having slowed in the previous month.
  • Demand for housing remained firm, though house price inflation was slightly weaker.
  • Investment intentions persisted at high levels, especially in the service sector.
  • Demand for exports remained buoyant, despite the continued high value of sterling.
  • Growth in manufacturing output picked up, boosted by external demand.
  • Output growth in both the construction and service sectors continued to strengthen.
  • Employment intentions increased, driven largely by demand for labour in the service sector. And recruitment difficulties increased, with skill shortages becoming more broad-based across types of labour in some regions.
  • Capacity pressures remained high, particularly in the construction and service sectors.
  • Growth in across-the-board pay settlements increased modestly, though increases in other forms of remuneration became more pronounced, consistent with greater recruitment difficulties.
  • In contrast, growth in materials costs slowed further, so that input price inflation eased again. However, output price inflation remained stable as firms rebuilt margins.
  • Consumer price inflation also remained steady at its recent relatively high rate.

PDFAgents' summary of business conditions - April 2007

Other Agents' summary of business conditions

This page was last updated 31 January 2023