The Bank of England's network of regional agents has published its monthly briefing on economic conditions across the United Kingdom, providing a ground-level view of the economy that complements the statistical picture produced by official data.
The May 2026 briefing reports that economic activity has been modestly positive across most regions, with services activity growing slowly and manufacturing stabilising after a prolonged period of contraction. Consumer spending has held up better than expected, supported by real wage growth, but businesses report that investment intentions remain cautious, with many firms delaying major capital expenditure until the economic outlook becomes clearer.
The most significant finding concerns the labour market. The agents report that recruitment difficulties have eased significantly from their peak in 2024, with most businesses now able to fill vacancies without the acute shortages that characterised the post-pandemic period. Wage growth has moderated accordingly, though it remains above the level that would be consistent with the Bank's inflation target.
The agents' reports are an important input into the Monetary Policy Committee's deliberations. They provide qualitative evidence that can identify turning points in the economy before they appear in official statistics. The May report is broadly consistent with the MPC's assessment that the economy is growing slowly, that the labour market is rebalancing, and that inflationary pressures are easing — but that the process is gradual and uneven.
Join in — free. Comments on Daily Junction are for members, so real names stay rare and bots stay out.
One field. We email you a 6-digit code — no password needed. Your comment is kept while you do it.
Under 13? You’ll need a parent’s OK first — it takes them one click.