London's Economy Today - Issue 222 - February 2021

The overview

• There is optimism about the economic recovery, but its pace remains unclear
• London’s labour market, and across all its sub-regions, continues to perform worse than the UK
• London's Central Activities Zone (CAZ) can bounce back

Economic indicators

• The PMI new business index in London fell to 46.7 in January from 49.1 in December with sentiment remaining negative. An index reading above 50.0 indicates an increase in new orders on average across firms from the previous month.
• In January, surveyors reported a further marked deterioration in expectations for house prices in London over the next three months. The net balance of house prices expectations was -43 in January, lower than the figure for December of -25.
• Consumer confidence in London improved in February, with the consumer confidence index in London rising to -12, where it was in the Summer; it was -22 in January. 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.

London's Economy Today supplement: COVID-19 and London’s labour market – emerging impacts

• Since the first lockdown measures were announced in March 2020, London has experienced a year of falling employment – reversing four years of gains
• Some groups – including women and especially younger Londoners – have recorded larger increases in unemployment in the last year
• The decline in jobs in London has already exceeded the one seen during the financial crisis, with significant variation between sectors.

London’s Economy Today data on the Datastore

• The main economic indicators for London are available to download from the Datastore.