Agents' Summary of Business Conditions - March 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 17 March 2008

Consumption growth eased, driven by slower growth in the value of retail spending.
The easing in demand for housing continued, and house price inflation fell further.
Investment intentions fell in both the services and manufacturing sectors. Tighter credit conditions continued to weigh on investment intentions, mainly through their effect on uncertainty about demand.
Demand for exports remained robust, as did forward orders.
Growth in manufacturing edged down, while that in construction and service sector output slowed further.
Labour demand softened and recruitment difficulties became less pronounced.
Capacity pressures lessened and were expected to ease further.
There was little change in pay settlements and growth in total labour costs remained well contained.
Annual input price inflation rose sharply and annual output price inflation increased as manufacturers sought to restore margins. (See box on the Agents’ cost pass-through survey.)
Annual consumer price inflation increased, driven by increases in the prices of both goods and services.