Agents' Summary of Business Conditions - September 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 September 2007

Consumption growth slowed further, particularly spending on consumer services.
Demand for housing also eased in most regions, as did house price inflation.
In contrast, companies maintained healthy investment intentions.
Total demand for exports was buoyant overall.
Growth in manufacturing was solid, and construction output remained exceptionally strong. However, service sector activity seemed to have passed its peak.
Employment intentions eased, largely owing to developments in the consumer service sector, but overall intentions remained elevated and recruitment difficulties continued to rise.
Capacity pressures lessened in consumer service industries, but persisted elsewhere.
Growth in pay awards remained well contained and that in total labour costs eased slightly, though pointed to stronger earnings growth than official data.
While changing little in the month, annual output price inflation outstripped input price inflation so that the process of margin rebuilding by manufacturers continued.
Annual consumer price inflation ticked down. Despite the impact of recent floods and rising commodity prices, aggressive discounting by major retailers was restraining final goods price inflation.

Agents' summary of business conditions - September 2007