Agents' Summary of Business Conditions

Annual growth in retail sales values had been little changed and growth in consumer services turnover had edged higher.
Housing market transactions had risen strongly on a year earlier, though some contacts reported that the implementation of new rules resulting from the Mortgage Market Review appeared to have been associated with a slowing in mortgage approvals.
Investment intentions had increased, reflecting growing confidence in the strength of demand and, for some contacts, an improvement in the availability of finance.
Growth in business services turnover had remained strong, especially for professional and financial services.
Manufacturing output for the domestic market and for export had continued to grow at a steady pace.
Construction output had continued to grow strongly, driven by house building.
Corporate credit conditions had continued to improve.
Employment intentions had increased further, particularly in business services. Recruitment difficulties had remained slightly above normal.
Capacity utilisation had remained close to normal, though had risen a little further above that level in manufacturing.
Growth in total labour costs per employee had edged up further, remaining moderate.
Materials costs and imported finished goods prices had been little changed on a year earlier.
Output prices and profitability had continued to increase modestly.
Consumer price inflation had remained moderate, with services inflation having edged lower.

Agents' Summary of Business Conditions - May 2014