Agents' Summary of Business Conditions - July 2014

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 23 July 2014

Retail sales and consumer services values had continued to grow at a steady rate.
Activity in the housing market had eased, reflecting the effect of the implementation of the Mortgage Market Review and a shortage of properties for sale.
Contacts’ capital expenditure plans suggested steady growth in investment over the next twelve months.
Business services turnover growth had been little changed.
Growth in manufacturing output for the domestic market had increased slightly. Manufacturing export values had continued to grow at a moderate rate, although sterling’s appreciation had negatively affected export margins.
Construction output had continued to grow strongly, with growth widening out beyond house building.
Corporate credit conditions had continued to improve, with few reports of companies not being able to access finance.
Employment intentions had risen, pointing to moderate growth in the next six months. Recruitment difficulties had increased further, remaining modestly above normal levels.
Capacity utilisation had been little changed, remaining marginally above normal.
Growth in total labour costs per employee had remained moderate.
Materials costs and imported finished goods prices were both lower than a year earlier, partly reflecting the effects of sterling’s appreciation.
Output prices had increased only modestly, despite rising demand. Manufacturing and services profitability had risen further.
Consumer price inflation had remained subdued.