Agents' Summary of Business Conditions - August 2008

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 19 August 2008

Consumption growth eased further, reflecting weakness in demand for consumer services.
The slowdown in housing demand continued.
Investment intentions declined. With regard to credit conditions, the costs of finance and trade credit insurance had risen and availability had diminished.
Growth in the demand for exports was broadly stable.
Growth in domestically orientated manufacturing output was steady, having fallen sharply in previous months. But there was a further pronounced deceleration in construction and services output.
Labour demand softened. Recruitment difficulties were little changed, partly reflecting reduced labour supply.
Capacity pressures continued to ease.
Growth in total labour costs remained well contained.
Annual input price inflation was little changed but annual output price inflation increased.
Annual consumer price inflation continued to rise.