The Economic Outlook for London

After a period of rapid growth in the first half of the year, the UK economy hit a softer patch in the summer. This article looks at whether this softer patch threatens the recovery in London from the significant shake‐out of jobs in 2000–2002, which had previously looked to be underway. It concludes that fewer net new jobs are likely to be created in London this year than we expected six months ago, but that employment growth is still expected to exceed the UK average in 2005 and 2006.