- 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.