Latest Data Highlights Key Trends in London’s Economy

The latest edition of London’s Economy Today, published by the Greater London Authority (GLA), provides updated data on economic conditions in the capital, covering output, employment, business activity and household finances.

The December 2025 report shows that London’s economic output is forecast to increase in the coming years following a period of slower growth. Projections indicate that gross value added (GVA) is expected to rise through 2026 and beyond, supported by changes in inflation and interest rate conditions. Workforce jobs are also forecast to grow gradually, with employment levels expected to increase over the medium term.

Recent indicators of business activity show a mixed picture. The Purchasing Managers’ Index (PMI) for London’s private sector recorded a slowdown in activity and new orders in November, although readings remained above the level that signals contraction. This suggests that business activity continued to expand, but at a slower pace than in previous months.

Household income and consumer spending are forecast to improve as inflationary pressures ease. The report notes that rising real household incomes could influence demand for goods and services across London, including sectors with a high concentration of small and medium-sized enterprises.

Property market data included in the report shows continued weakness in house price indicators, with a greater proportion of surveyors reporting price falls in November compared with October. The report also highlights longer-term structural factors affecting London’s economy, including productivity trends, population growth and labour market dynamics.

The GLA publication provides monthly updates on economic performance and forecasts, offering data that businesses can use to monitor changes in output, employment and demand across the capital as 2026 begins.