London's Economy Today - Issue 180 - August 2017

The overview

• Bank of England nudges down UK growth forecast for this year while remaining relatively steady on CPI inflation
• Economic growth picks up in a number of countries
• London’s labour market remains strong

Economic indicators

• The Purchasing Managers’ Index (PMI) survey shows the monthly business trends at private sector firms. Index readings above 50.0 suggest a month-on-month increase in that variable, while readings below indicate a decrease. At 53.2, the Business Activity Index suggested that London firms continued to experience a rise in output during July, and at a stronger rate than was reported in June (52.2).
• House price expectations for London remained negative in July 2017. At -30, down from -19 in June, it was the second-lowest in 13 months.
• The GfK index of consumer confidence reflects people’s views on their financial position and the general economy over the past year and in the next 12 months. A score above zero suggests positive opinions; a score below zero indicates negative sentiment. In July 2017, consumers in London were neither pessimistic or optimistic about the future as signalled by the consumer confidence index registering at 0.

London’s Economy Today supplement: Updated long-term employment projections for London

This work presents updated employment projections for London by sector and borough to 2041.

• The central projection estimates that jobs in London will grow from 2016 at an annual average rate of 0.78 per cent a year, equivalent to 49,000 jobs, to reach 6.907 million in 2041.
• Similarly to the last set of projections, jobs in the professional, real estate, scientific and technical sector is expected to grow strongly, accounting for over a third of the total increase expected in London to 2041. Strong employment growth is also expected in the administrative and support services, accommodation and food services, information and communications sectors, education, and health sectors. The six sectors account for nearly three fifths of the expected total London increase in jobs to 2041.
• The borough site projections take into consideration trends in jobs growth, and expected employment site developments. Boroughs with areas within the Central Activities Zone account for 35 per cent of the annual projected growth in jobs, or 16,900 jobs per year. The annual growth rate, however, is almost identical with that for London as a whole at 0.77 per cent a year.

London’s Economy Today data on the Datastore

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