Agents' Summary of Business Conditions - May 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 22 May 2007
  • Consumption growth picked up, with retail sales boosted by unseasonably warm weather.
  • Demand for housing was firm, and there was continued upward pressure on house prices.
  • Investment intentions strengthened further, especially in the service sector.
  • Demand for exports remained buoyant and exceeded companies’ expectations.
  • Manufacturing activity remained well supported by external demand.
  • Output growth in both the construction and service sectors continued to rise.
  • Employment intentions increased, driven largely by demand for labour in the service sector. And recruitment difficulties became more pronounced in most regions.
  • Capacity pressures remained high, especially in the construction and service sectors, but also became more evident in manufacturing.
  • Growth in pay awards increased only slightly, though increases in other forms of employee compensation continued to drive stronger reported growth in total labour costs than suggested by official data.
  • The recent sharp fall in input price inflation was arrested in the month, while output price inflation edged up — consistent with margin rebuilding.
  • Consumer price inflation remained elevated.

PDFAgents' summary of business conditions - May 2007

Other Agents' summary of business conditions

This page was last updated 31 January 2023