BoE's Agents Say Consumer Spending Stabilizing, Employment Intentions Less Negative

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Consumer spending in the UK continued to stabilize in the period between late June 2009 and late July 2009 and housing market activity has been recovering, the Bank of England's latest agents' summary of business conditions revealed Wednesday.

According to BoE agents, investment intentions remained depressed during the survey period, driven primarily by the weak and uncertain outlook for demand.

The agents' summary provides information on the state of business conditions, from companies across all sectors of the economy.

There had been little change to the pace of contraction in export volumes, agents said. Also, there were further widespread reports that the pace of de-stocking had slowed.

Moreover, agents found that there was more evidence that manufacturing output was stabilizing. Recent reports from business services providers had been more mixed. And construction activity remained severely depressed.

On a positive note, agents found that employment intentions were less negative during the survey than earlier in the year. While many firms expected to reduce head count further, there were fewer plans for large scale redundancies.

Consumer spending in the UK continued to stabilize in the period between late June 2009 and late July 2009 and housing market activity has been recovering, the Bank of England's latest agents' summary of business conditions revealed Wednesday. (Market News Provided by RTTNews)