12 January 2016 • In this blog GroupM’s Adam Smith examines the ad forecast for 2016 and explains some of the reasons why UK ad investment could be outrunning GDP growth for five years in a row. Aggregate demand in the UK looks well-set for the year ahead, although still dependant on the consumer as opposed to the smaller components of investment, government and exports. 74% of the working age population is employed, the highest rate ever recorded, and the working population numbers a record at 31 million. Workers’ real wages are rising and almost restored to their 2008 peak. Energy prices and property wealth are also consumer tailwinds. The headwinds seem to be abating, chiefly the China slowdown, uncertainty about what the government will cut, and immediate interest rate rises. Even the Eurozone is perking up thanks to QE, cheap energy, and a more competitive euro.
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