The Bank of England have published their “Agents’ summary of business conditions” May update.
The report details activities of consumer spending, manufacturing output, the housing market and much more. To read the report click here. If you’re interested in the headline findings, please read on.
- Consumer spending growth had moderated in real terms, as spending power had been hit by higher prices. But manufacturing export growth had risen. That had mostly reﬂected the effects of the earlier decline in sterling.
Investment intentions had also edged higher and were consistent with modest growth in spending over the year ahead.
- In the labour market, recruitment conditions had tightened a little further, with skills shortages reported in a wider range of activities. Labour costs growth had edged up in manufacturing. But pay awards remained clustered around 2%–2½% across the economy.
- Consumer goods price inﬂation had picked up markedly. That largely reﬂected the effects of sterling’s earlier fall feeding through supply chains and into retail prices. Consumer services price inﬂation had also increased, but to a lesser degree.