Bank of England reports subdued growth and AI adoption

The Bank of England has published its Agents’ Summary of Business Conditions for the July Monetary Policy Committee meeting, describing subdued private-sector growth, weaker confidence, and rising use of AI and automation.

• Business conditions remained weak over the six weeks to end-June, with employment intentions broadly flat, investment intentions uneven but broadly flat, and pay settlements for 2026 unchanged at 3.5%.
• The report says AI adoption is rising across the economy, driving data-center demand but also facing constraints from electricity capacity, grid connections, planning, land-use, and shortages of semiconductors, transformers, and skilled labour. It also notes food inflation expectations easing to a 2026 peak of 4%–5% from 6%–7% earlier in the Middle East conflict.