The UK is set to be the fastest growing member of the G7 group of major advanced economies for a second year in row, with consensus forecasts pointing to a 2.6% rise in real gross domestic product (GDP) in 2015.
Unemployment, at 5.6%, has fallen to levels last seen before Lehman Brothers collapsed in 2008. In addition, real wage growth is accelerating and consumer prices are stable. The Misery Index, which sums the rates of unemployment and inflation, is running at its lowest level for decades. This is good news for households, who have more spending power and more assurance over income.
As a result, consumer confidence is now the highest since the 1990s. This brighter picture has helped to push retail sales volumes up by more than 4% over the last year.
Virtuous circles are taking shape in the UK economy as the impressive job creation is supporting households and boosting economic demand, which then fuels business confidence, spurring the creation of more jobs. The stage is set therefore for improving occupier demand in all the main property sectors, and across the country.
Source : M&G Real Estate