The Growth And Growth Of The Uk Economy

1560 Words7 Pages
Over the next five years UK economy is expected to see moderate to strong growth. Consumer spending has been the main economic driver over the past three years, driven by rapid employment growth, a falling household savings rate and supported by continually strong real estate market. This trend is expected to persist in the shorter turn, helped by low inflation that is boosting real income growth and continued historically low mortgage rates.

Despite medium term expectations that real consumer growth will moderate from 2.4% to 2% per annum in 2017-2020 due to slower employment growth and a gradual rise in inflation, we do not envisage this to have a big effect within central London, where unemployment rates are low and real incomes are
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In addition, central London property prices and retail industries seem to be more resilient to down pressures from global downturns maintaining a strong economy in that area.

4 Industry Analysis

The health and fitness industry faced challenging economic conditions in 2010-11. As a result some gym goers had to cancel their memberships or opt to exercise independently at no cost. Others switched to exercise at the budget gyms, which do not require long-term contracts and charge less for their very basic services. As a result a number of gyms have seen sharp decline in membership numbers, whilst newer budget operators have benefited from that. There are also signs that traditional full spectrum gyms have suffered over the past five years as consumer preferences shifted towards boutique studios, personal training and boot camp style operators.

The industry is expected perform better in the next five years. Demand for gyms is expected to improve as healthier consumer sentiment encourages people to spend more freely on fitness activities. Furthermore, growing awareness of the merits of regular exercise will continue to benefit the industry as a whole. Consumer preferences will continue to shift towards
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