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mpc: 10 8% between the February and March RPI collection dates but had since begun to fall back. RPI inflation was unchanged at 2.7% in February, while RPIY inflation had risen by 0.1 percentage points to 1.6%. HICP inflation had fallen by 0.2 percentage points to 0.8%, thus widening the gap between it and RPIX inflation.

VI Reports by the Bank's Agents

A46 Manufacturing contacts had continued to report further moderate growth in output and orders. However, there had been more widespread evidence of a slowing in orders in the information and communications technology (ICT) sector. The Agents had reported that manufacturing contacts were becoming increasingly uncertain about the impact of the downturn in the US economy on manufacturing activity in the United Kingdom. A47 The Agents had conducted a survey of around 170 firms (around one third of which had US parents) regarding the extent to which they had revised their expectations of growth in exports, output and investment since the beginning of the year as a result of the slowdown in the United States. A net balance of around two thirds of firms (weighted by turnover) reported that they had revised down their expectations for exports to the United States, although the majority reported that expectations had been revised down only slightly. While the overall net balance was similar for those firms with US parents, the responses had included a significantly higher proportion of firms reporting that expectations had been revised down `significantly'. By sector, responses from the ICT industries had recorded the largest downward revisions. The responses had been more optimistic for total exports. But although the results had implied that growth in other export markets had been revised up, the overall balance remained negative. Expectations of output had also been revised downwards, by a similar extent to exports. Investment intentions had been least affected, although the balance of respondents also suggested that they had been revised down slightly. A48 Contacts had reported a strong pick-up in construction activity in recent weeks, making up for delays due to poor weather in earlier months. Most contacts had continued to suggest that underlying confidence and expectations regarding future construction activity remained robust. Moreover, some Agencies had noted that earlier expectations of a pick-up in public sector construction were now beginning to be realised.