Agents' Summary of Business Conditions - October 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 21 October 2008
  • Consumers’ expenditure contracted during the third quarter.
  • The weakening in housing demand continued in September.
  • There had been a widespread slowdown in capital spending, primarily reflecting falling capacity constraints and the weaker demand outlook.
  • Many firms had also experienced a further tightening in their own credit conditions, according to a special survey carried out this month (see box). But this was still seen to be less critical to investment plans than the outlook for demand.
  • Inventories of consumer durables and new cars increased. In other sectors, however, firms had reduced stocks in response to prospective weaker demand and to conserve cash.
  • Demand for exports weakened slightly.
  • Growth in domestically orientated manufacturing fell and there was further deceleration in services output.
  • Employment intentions had fallen sharply and recruitment difficulties had declined.
  • Capacity pressures continued to fall.
  • Growth in total labour costs remained well contained.
  • Annual input price inflation eased slightly, but output price inflation remained elevated.
  • Annual consumer price inflation was steady.


PDFAgents' summary of business conditions - October 2008

Other Agents' summary of business conditions

This page was last updated 31 January 2023

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