Employment Levels To Rise By 22,000

Greater Manchester’s economy is on course to be £600m larger by the end of 2017 than it was in the three months after the EU referendum result, according to a new study by law firm Irwin Mitchell.

The UK Powerhouse report, produced for Irwin Mitchell by the Centre for Economic and Business Research (Cebr), predicts that the value of goods and services produced in Greater Manchester will grow by 0.7% during 2017 despite the challenges of Brexit uncertainty, rising inflation and falling investment by businesses. 

Irwin Mitchell’s report forecasts that by the end of 2017, the value of the Greater Manchester economy will be £58.9bn - £634m larger than it was in the three months following the Brexit vote. It also expects 22,258 jobs to be created during the period. 

Although Greater Manchester’s economy is set to grow in 2017, it will be at a much slower rate than in the 12 months to Q3 2016 when it posted annual growth of 2.4%. 

The study also revealed that not one of the top 10 fastest growing cities in 2017 will be in the ‘Northern Powerhouse’ region with places such as Leeds and Sheffield  expected to post GVA* growth of 0.7% during 2017.

According to the report, Cambridge, Oxford and Milton Keynes will have the fastest growing economies in 2017, although their expansion rates will be significantly lower than they were in the three months immediately after the EU referendum vote. The economies of Swansea, Belfast and Middlesbrough are expected to expand at the slowest rate in 2017.

Jack Coy, an economist at Cebr, said: “The delayed effects of Brexit have been in the pipeline for a while and there will be some difficult economic pressures in 2017. These are likely to be felt throughout cities across the UK, and threaten to slow growth in the short and medium term. For example, rising inflation under a sharply depreciated pound challenges profits for producers nationwide.

“With consumer spending also sapped by rising prices, and a labour market which has probably passed its peak, growth may slow across the country. Retail hubs such as Manchester may also see spending growth soften, while consumers rein in budgets.”