LONDON (MNI) – Bank of England agents reported that the
exceptionally cold pre-Christmas weather caused a fall in the growth
rate of household spending between late November and late December 2010.
The agents scores showed retail sales values dipping to 1.1 in
December from 1.2 in November and consumer services turnover falling to
1.0 from 1.3.
Private sector employment intentions rose further with the BOE’s
contacts in both manufacturing and services expecting to recruit, albeit
cautiously.
The manufacturing employment intentions score rose to 0.7 for
December versus 0.6 in November. While services employment intentions is
unchanged at 0.7.
Business services employment intentions picked up to 0.6 from 0.5.
Labour costs were rising at a rate approaching the pre-recession
pace in manufacturing, but were increasing a little more slowly in
services.
The pace of inflation in consumer goods was slightly higher than
average, but was broadly in line with the average in services.
The retail goods price score rose to 2.4 versus 2.2 in the prior
month. Retail services prices climbed to 2.1 from 2.0.
Contacts in industry continued to report increases in the cost of
raw materials, at that had started to feed through to the price of
imported finished goods.
–London newsroom: 4420 7862 7492; e-mail: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]
