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mpc: 26 In the domestic economy, estimated consumption growth had slowed more rapidly than expected in 2004 Q4. Information about expenditure on consumer goods suggested that this weakness had started in December and had persisted in the first quarter of this year. But there was not much hard evidence yet about recent demand for consumer services. In contrast, business surveys suggested that overall output growth remained strong, despite the weakness of the most recent industrial production data. There had not been much news on the month from the labour market; it remained tight, but pay growth remained subdued ­ judging by, for example, matched settlements. The sharp rise in reported average hours worked per head was a puzzle, as it was not reflected in data on overtime and weekly earnings. Firms continued to report substantial pressures on their costs, but there was little evidence of greater pass-through to consumer prices; output price inflation, excluding oil, had been stable.