The latest Bank of England Agents’ Summary for Quarter 2 2016 has been published. Key highlights are:
- The annual activity growth rate has remained moderate
- Business services growth has slowed
- Housing market activity has fallen
- Growth in labour costs per employee has risen
Annual turnover growth has remained moderate, with turnover growth easing in the service sector, partly due to decision delays ahead of the EU referendum.
Construction output has remained stable with construction of new industrial property and education facilities remaining sold and more demand for refurbishment of existing commercial space. The housing market activity fell in April and May compared to the heightened activity that was seen in Quarter 1.
Asa result of the introduction of the National Living Wage in April, there has been growth in labour costs per employee. Recruitment difficulties have eased in recent months though they remain higher than normal.
