London's Economy Today - Issue 56 - April 2007

The overview

• sterling heads above $2 as higher inflation increases expectations of further interest rate rises
• jump in inflation triggers open letter from the Governor of the Bank of England
• slowing US and higher oil prices are risks to strong world economy

Economic indicators

• London’s firms continued to expand their output of goods and services in March 2007
• the PMI of business activity recorded 56.9 in March compared to 57.1 in February.
• annual house price inflation in London was 14.3% in Q1 2007, up from 11.3% in Q4 2006.

The McKinsey report and its relevance to London’s financial services sector

• recent trends in market shares
• Labour markets
• the legal and regulatory environment

London’s Economy Today data on the Datastore

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