The Worst Shocks To The UK Economy Appear To Be Behind Us
Accrington. The worst shocks to the UK economy appear to be behind us, according to the Bank of England’s latest summary of business conditions. The summary, which draws on evidence gathered from BMF members among a wide variety of other UK businesses, suggests:
• Consumer spending had continued to stabilise.
• The recovery in housing market activity had continued.
• Investment intentions remained depressed, driven primarily by the weak and uncertain outlook for demand.
• There had been little change to the pace of contraction in export volumes.
• There were further, widespread reports that the pace of de-stocking had slowed.
• There was more evidence that manufacturing output was stabilising. Recent reports from business services providers had been more mixed. And construction activity remained severely depressed.
• Employment intentions were less negative than earlier in the year — while many firms expected to reduce head count further, there were fewer plans for large scale redundancies.
• Per capita labour costs remained lower than the same period a year earlier, while inflation in materials costs had eased further.
• There was little evidence of inflation in manufactured output prices. And many business services prices were lower than a year earlier.
• Consumer goods price inflation remained low but positive