The latest Bank of England Agents’ Summary for Quarter One 2017 has been published. Key highlights are:
- Overall moderate rates of growth activity have continued
- Investment intentions have picked up with points to modest growth ahead
- The fall in sterling has resulted in higher manufacturing output
Moderate rates of activity growth has continued overall. Retail sales volumes growth had eased. It was expected to slow further during the year ahead as the fall in sterling fed through to higher prices, reducing households’ purchasing power. In contrast, export volume growth had picked up. That was due to the fall in sterling and stronger world growth.
Investment intentions had picked up, pointing to modest growth in spending in the year ahead. That reflected continued moderate demand growth and less uncertainty about economic prospects, particularly in the near term. But a lack of visibility of the United Kingdom’s future trading arrangements was weighing on longer-term plans for some contacts.
The fall in sterling was being passed through into higher manufacturing output and consumer goods price inflation. Business and consumer services price inflation had edged higher.
