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mpc: 6 Environment, Transport and the Regions had released new figures for construction output in Q3 which, taken by themselves, implied that output growth might be revised down to 0.6%. At this stage indicators for Q4 were for growth at much the same rate. 21 The Committee noted that a substantial decrease in the rate of growth of private spending had been incorporated in the central projection of the November Inflation Report. Since then, the uncertainties had probably increased. The news in the National Accounts data for Q3 related mainly to the composition of demand. Consumption growth was stronger than expected, and as yet showed little signs of slowing as forecast in the November Inflation Report. But investment and government consumption had not grown as rapidly as projected, and so final domestic demand had grown a little slower than in Q2, at 0.8%. 22 The Committee discussed the implications of these figures for the path of output over the next few quarters. Some members placed more weight on the continuing buoyancy of consumption; others emphasised the relative weakness in the growth of other components of final domestic demand, in particular investment, and in addition the risk that stockbuilding might fall back. 23 To date, consumption had continued to grow at around 4% a year. When taken together with the household borrowing figures, high (and rising) house prices and a tight labour market this suggested continuing momentum in the economy. Consumption was by far the largest component of domestic demand and perhaps also one of the less erratic elements. Growth in real incomes and employment had recently begun to slow, and lower share prices had reduced financial wealth a little. These influences would tend to restrain consumption. The question was whether the deceleration would be as marked as in the central projection in the November Inflation Report. 24 Retail sales volumes had been flat in October, but private car registrations had grown quite strongly in October and November; sales of new cars to the personal sector were included in consumption but not in retail sales. Surveys were mixed. The CBI Distributive Trades survey for November had shown a surprisingly weak picture for the motor trades, but a sharp recovery in retail volumes, as well as in distribution and wholesaling; all three of these were close to their September levels, having fallen sharply in October. The three-month average measure of retail volumes had declined from the high levels recorded at the turn of the millennium, although the latest three-month period included the (possibly erratically low) October figure. The GfK consumer confidence survey,