Agents' Summary of Business Conditions - October 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 22 October 2014

Retail sales values growth had eased, reflecting a continued fall in food price inflation. Consumer services values growth had also edged lower.
Housing market demand and supply had become more closely aligned and house price inflation had moderated across much of the United Kingdom.
Investment intentions for the next twelve months had remained consistent with moderate growth in capital spending.
Business services turnover growth had been robust and broad-based across subsectors.
Manufacturing output growth for the domestic market had been steady. Manufacturing export volume growth had continued to slow, reflecting softening global demand, adverse geopolitical developments and sterling’s appreciation.
Construction output growth had remained strong.
Corporate credit conditions had remained close to normal overall, though they continued to vary by firm size and across sectors.
Employment intentions had increased further for business services, but had eased in manufacturing and consumer services.
Recruitment difficulties had picked up, reflecting a broadening of skills shortages as the economy strengthened.
Capacity utilisation had been close to normal for both manufacturing and services.
Growth in total labour costs per employee had increased slightly.
Material costs and imported finished goods prices had continued to fall on a year earlier, reflecting lower global commodity prices and the effects of sterling’s appreciation.
Output price inflation had slowed further in manufacturing, but was little changed for business services. Profitability had continued to rise gently.
Consumer price inflation had remained modest.