Agents' Summary of Business Conditions - June 2012

Published on 20 June 2012

Consumer demand continued to grow at a gradual pace, although the Agents’ scores for growth in retail goods and services edged down on the month.
The fairly widespread improvement in housing market activity since the start of the year appeared to have dissipated somewhat.
Contacts reported that investment was likely to rise at a modest pace over the coming twelve months.
Goods exports continued to grow steadily, driven by increases in demand in a number of emerging market economies, but had slowed a touch on the month.
Turnover in the business services sector had risen a little compared with a year earlier, but fortunes both across and within subsectors were very mixed.
The manufacturing industry continued to expand at a modest pace. The strongest activity was typically among firms in export supply chains.
Construction output had declined compared with a year earlier, as public sector contracts came to an end.
Credit conditions had tightened somewhat, with a number of firms reporting that rates and fees had risen. And many firms remained focused on paying down existing debt.
Private sector employment intentions suggested that job numbers would be broadly stable over the next six months.
Capacity utilisation in the manufacturing sector was around normal, while there was rather more slack in the service sector.
Private sector settlements tended to be between 2%–3%. Awards were, on balance, higher in manufacturing than services, while pay freezes remained common in construction and retail.
Non-labour input costs had continued to stabilise, and the pace of inflation had slowed further.
Manufacturing output price inflation remained around its historical average. Business services inflation was subdued.
Consumer price inflation was falling slowly, but remained elevated.