- Consumption growth remained well below its rate earlier in 2007. Growth in the value of Christmas sales was also less than at the same time a year earlier, and retailers resorted to extensive discounting. See the box on the Agents’ retail survey.
- The easing in demand for housing continued, and house price inflation fell.
- Investment intentions fell further, with weaker intentions evident in both the services and manufacturing sectors, in part reflecting tighter credit conditions.
- In contrast to the slowdown in domestic spending, demand for exports remained buoyant.
- Growth in manufacturing was solid. Growth in construction and service sector output slowed further, albeit from high levels, so that growth in aggregate output also slowed.
- Employment intentions fell, and recruitment difficulties eased somewhat.
- Capacity pressures lessened, especially in service industries.
- Growth in total labour costs remained well contained, with little change expected in 2008.
- Annual input price inflation was unchanged in December following a rebound in preceding months. Annual output price inflation was unchanged.
- Annual consumer price inflation increased, with the effects of non-food discounting more than offset by increases in the prices of fuel and food.