Companies expect unit costs to be broadly stable over the next four months. Firms had forecast a slowdown in job losses for the past four months, but this did not happen. They expect employment to fall at a slower rate over the next four months. The balance of minus 13 compares with minus 14 in January and minus 13 in October. Medium firms said for the first time since last July that they plan to cut investment in plant and machinery over the next year.
Small firms continue to scale back investment intentions.
The main reason for reducing planned investment is uncertainty about demand, followed by an inadequate net return and a shortage of internal finance.