Agents' Summary of Business Conditions - July 2008

• Consumption growth eased further, reflecting weaker demand for consumer services.
• The sharp downturn in housing demand continued.
• Companies remained cautious in terms of their investment intentions. The majority still remained largely unaffected by the tightening in credit conditions, though firms seeking external finance had more hurdles to satisfy.
• Demand for exports remained firm.
• Growth in services and domestically orientated manufacturing eased further, and there was a sharp decline in construction.
• Labour demand softened and recruitment difficulties eased.
• Capacity pressures continued to ease.
• Growth in total labour costs rose slightly but nonetheless remained moderate.
• Manufacturers’ annual input and output price inflation rose further, though their margins continued to be squeezed.
• Annual consumer price inflation increased sharply.

Agents' summary of business conditions - July 2008

• Agents' scores (xlsx)
• Definitions for the Agents’ scores
• Response to consultation on changes to Agents' scores