mpc.theyserveforyou.com

mpc: 9 and tobacco. The BRC Shop Price Index had risen by 0.9% in February, to give an annualinflation rate of -0.3%. The CBI Distributive Trades Survey retail price expectations balance hadfallen to -9 in March, the lowest since the series began in 1983.

VI

Reports by the Bank's Agents

A45 The Bank's regional Agents had reported a pause in manufacturing output growth as millennium stocks had been run down. There had been stronger growth in business servicesmainly related to professional services. Consistent with the latest CIPS construction survey,construction orders had continued to grow, particularly from the leisure industry and projectsunder the Private Finance Initiative. A46 Some Agents had reported a slight easing in retail sales growth since January as many retailers had run down stocks, though the household goods sector had continued to show stronggrowth. The new car market had remained subdued, but there had been reports of continuedrecovery in the used car market. Exporters had remained confident about the strength of overseasdemand growth, but margins had been further squeezed owing to the strength of sterling. Therehad been evidence that import penetration had increased, both at the intermediate and finalproduction levels. A47 In the housing market, prices were reported to be rising, but not accelerating. There had been some evidence that activity had peaked, with the exception of city centre sites. In the labourmarket, skill shortages had remained a concern. There had been considerable variation inDecember bonuses across and within both regions and sectors. A48 Manufacturers' input prices had continued to rise. There had been continued downward pressure on manufacturers' output prices, squeezing margins further. In the service sector, inputprice increases and higher wage costs had remained easier to pass through to consumers. A49 Retail price inflation had been reported to have been broadly negative, and the Agents had reported some concern from their contacts about higher overhead costs. A50 The Bank's regional Agents had conducted a survey of UK firms regarding their investment intentions. Among the contacts sampled, more companies had raised their investmentplans than had cut them over the past six months. The construction and non-retail services sectorshad recorded the strongest revisions to their investment intentions. Over the next two years, themajority of firms had expected investment spending on IT to be maintained or increased,compared with the previous two years. Almost half of the companies surveyed had claimed not to