This publication summarises intelligence from the Bank’s Agents considered by the Monetary Policy Committee (MPC) at its September meeting. The intelligence was gathered in the six weeks to late August. The Agents’ scores published alongside this document generally represent developments over the past three months compared with the same three months a year ago.
For the most part, economic developments remain largely the same as at the previous update set out in the August Monetary Policy Report (MPR).
Demand for consumer goods and services remains subdued. However, contacts are still hopeful that consumption growth will pick up in the autumn. Investment intentions continue to gradually improve.
New corporate credit demand is gradually picking up from a low base. There is further evidence of improvement in the supply of credit to corporates.
Sentiment in the housing market has improved since the August rate cut, although housebuilding activity shows no signs of improvement yet. Rent inflation continues to moderate.
Manufacturing volume growth remains weak, although contacts continue to expect a modest pickup in volume growth through 2024 Q4 into 2025.
Employment intentions remain slightly positive, in line with the August MPR. Recruitment conditions continue to ease back to ‘normal’.
In the face of weak demand, and as labour markets have loosened, capacity utilisation has been falling and is now at normal levels on average across firms.
Cost and price developments are much the same as in the previous update. Consumer goods price inflation continues to dissipate and is now at very low levels, though risks around Red Sea disruption remain a concern for some. Consumer services price inflation remains high as wage growth eases only slowly.