BOE Agents: Private Sector Hiring Intentions Rise Modestly

LONDON (MNI) – Private sector companies expect to increase hiring
modestly, but this is likely to be offset by public sector job cuts,
according to the latest Bank of England Agents’ Report.

The BOE agents’ report, accompanying the September Monetary Policy
Committee minutes, said firms investment intentions were consistent with
a gradual rise in spending, with no sign a rapid recovery.

“Investment intentions remained little changed on the month.
Overall, intentions are consistent with a gradual, rather than robust,
pickup in spending,” the agents’ report said.

The agents’ contacts reported a softening in the pace of retail
sales growth. Credit conditions were said to be polarised, with small
firms and those in some sectors finding credit tight, while credit has
eased for those companies seen as better quality.

Against this backdrop “Private sector employment intentions had
been rising modestly in recent months, but contacts expected that
improvement to be offset by cuts in public sector headcount,” the
agents’ report said.

–London newsroom: 4420 7862 7492 e-mail: drobinson@marketnews.com

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