Agents' Summary of Business Conditions - July 2011

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 19 July 2011
  • The rate of growth of nominal spending on consumer goods and services remained sluggish.
  • Activity in the housing market had softened in recent weeks.
  • Overall, investment intentions continued to increase, although some firms had become a little more cautious.
  • The rate of export growth remained strong. More firms had begun to switch resources from domestic to export marketing.
  • Manufacturing output continued to grow, although more slowly for domestic markets than for export.
  • Steady growth in output in the business services sector was also continuing.
  • The level of construction output continued to rise very slowly but remained well below pre-recession levels.
  • Employment intentions indicated continuing job creation in the private sector in aggregate, though prospects in the consumer services sector were poor.
  • The degree of capacity utilisation continued to increase gradually, with slack more evident in services than manufacturing.
  • Growth in labour costs remained modest.
  • Increases in the cost of raw materials showed signs of moderating, but contacts were concerned by prospects for energy prices.
  • Inflation in the cost of imported finished goods was thought likely to persist somewhat longer than that of raw materials.
  • Transmission from higher costs to output prices remained limited, putting pressure on firms’ margins.
  • The rate of inflation for consumer goods and services remained high.

 

PDFAgents' summary of business conditions - July 2011

This page was last updated 07 January 2019
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