London's Economy Today - Issue 173 - January 2017

The overview

• UK economy continues to grow at the end of last year
• UK inflation remains low but is rising
• Despite some mixed business surveys most economic indicators show continued growth in London

Economic indicators

• London’s business activity increases with the PMI of business activity recorded at 56.1 in December 2016, up from 55.3 in November 2016. An index above 50 indicates an increase in business activity from the previous month.
• New orders in London rising with the Purchasing Managers’ Index (PMI) for new orders recorded at 58.6 in December 2016 compared to 55.6 in November 2016. An index above 50 indicates an increase in new orders from the previous month.
• Surveyors report that house prices are decreasing in London with the RICS Residential Market Survey showing a net balance of -15 for London house prices over the three months to December 2016.

London’s Economy Today supplement: Regional, sub-regional and local gross value added estimates for London, 1997-2015

• The latest data show that in 2015, London’s total GVA was over £378 billion, up 3.2 per cent on 2014 in nominal terms (ie, without taking account of inflation).
• London now accounts for 22.7 per cent of the UK’s total GVA (up from 18.7 per cent in 1997).
• In 2015, GVA per worker in London was £67,455, significantly higher than the figure of £49,067 for the UK as a whole.

London’s Economy Today data on the Datastore

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