London’s Economy Leads UK, Noting A Positive Growth Of The Country Economy Recovery

January 19
12:30 AM 2016

London's economy is on the first rank among the other regions in the UK. This growth is beyond the East of England and the South East of England, which dwell the second and third position.

Based on the most recent data from the L1oyds Bank Regional Purchasing Managers' Index as mentioned in Financial Director, London's economy leads UK with the index of 56.9, while the East of England 56.8, and the South East of England 56.8. The slowest development can be noticed in Yorkshire and Humber, with the business activity index only gained 52.5.

The overall England business activity index in last December slightly went down from 56 in November to 55.5. The index itself involved both service and manufacturing sectors, and has survived above 50.0 since three years ago. Meanwhile in Wales, it raised into 55.7 over six months and indicated the growing role of private sector business.   

A managing director, mid-markets and SME Banking at Lloyds Banking Group, Tim Hinton stated, "The UK economy ended 2015 on a relatively positive note, with December seeing the continuation of solid growth of both business activity and employment."

"The global economy is looking fragile and full of uncertainty, but with new business orders on the rise and inflationary pressures remaining largely subdued, growth prospects remain positive at the start of 2016," as mentioned in CityAM.

Responding to the Markit's similar survey result, there is a great expectation that the economic growth will keep increasing until the last quarter of this year, eventhough barely a small increase. There was a 0.4% growth during June till September.

From the Office for National Statistics report, the London's highest growth per person was 5.3% in 2014. London has managed to achieve 28.8% growth ever since the financial crisis started. According to the ONS, this fast recovery is the result of several important sectors, including finance (18.9%), professional & business services (16.7%), transport & hospitality (15.1%), public services (12.7%), and real estate (12.6%).

However, business is still tough for some employers despite the positive growth in some regions. Mike Naylor, the owner of a small metal-casting firm, thinks business is still unsure this year that he is still hesitant to give raise for his employees as mentioned in Reuters.     

Naylor said, "If the confidence isn't there, it's very difficult to say we will give you 2 percent or 3 percent this year. I can't see what 2016 is going to do for us."

Naylor's firm is one of the many British companies, which are still wary about the country's economic growth this year. 

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