The steady acceleration in the UK economy, which began in the spring of last year, is beginning to have an impact on the regions. The slowdown of the last two years had eroded the economic superiority of the southern1 regions, but there are already signs of a reversal.
Research director of Experian's Business Strategies division, Dr Neil Blake, says: “With its concentration of internationally-exposed service industries, London has been the worst hit of all the UK regions over the last two years, though the surrounding areas - the South East and the East of England - also experienced a marked slowdown. In contrast, strong service sector demand and a boom in construction buoyed up many northern regions. The net result has been the closing of the yawning north-south performance divide that had developed before the world downturn.
