Agents' Summary of Business Conditions - February 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 20 February 2007

Consumer spending was stronger than anticipated over the Christmas period but was more mixed in January.
Activity in the housing market remained mostly firm, though the outlook was less certain.
Export growth weakened a little, largely reflecting the stronger pound.
Investment intentions remained robust, particularly in the service sector.
Manufacturing output growth eased a little, but confidence was still upbeat.
Growth in construction output accelerated, helped by the mild weather in January.
Service sector output growth continued to accelerate on a broad front.
Employment intentions and recruitment difficulties increased, largely in professional and financial services.
Capacity pressures rose further.
Pay awards were expected to rise modestly in most sectors in 2007, but by rather less than the increase in retail price inflation over the past year.
Input price inflation eased again.
Consumer price inflation increased further.