London's Economy Today - Issue 167 - July 2016

Download the newsletter by clicking on the link below under 'related documents'.

The overview

• Markets stabilise following the UK’s vote to leave the European Union.
• Forecasts for UK and Eurozone growth in 2017 downgraded.
• The outlook for London’s economy is uncertain in the near term.

Economic indicators

• London’s business activity decreases with the Purchasing Managers’ Index (PMI) of business activity recorded at 48.4 in June 2016, down from 52.8 in May 2016.
• New orders in London falling with the PMI for new orders recorded at 49.7 in June 2016 compared to 50.8 in May 2016.
• Surveyors report that house prices are decreasing in London with the RICS Residential Market Survey showing a net balance of -46 for London house prices over the three months to June 2016.

London’s Economy Today supplement: Local authority level GVA estimates for London, 1997-2014

• New data from the ONS on output by local authority in England shows that in 2014 Westminster had the highest level of GVA of any London local authority, producing output worth £51.0 billion. This was followed by the City of London at £48.1 billion, while Barking and Dagenham had the lowest GVA of any London local authority in 2014 at £3.5 billion.
• The data also showed the growing importance of the City of London to London’s GVA with it accounting for 9 per cent of London’s output in 1997 rising to 13 per cent in 2014, and the continued importance of Westminster, with it accounting for 14 per cent of all London’s output in 2014.
• GLA Economics has calculated from these data that there exists a large variance of GVA per employee job between London’s local authorities, with the City of London producing GVA per employee job of £119,755 in 2014, while Hillingdon produced a GVA per employee job of £59,748.

London’s Economy Today data to Datastore

Additional data from the latest edition of London’s Economy Today can be found on the Datastore.