Leading Indicators | Is Britain's net zero economy the key to solving our productivity puzzle?
Discover key economic and financial metrics, and what to look out for in the week ahead.
25 February 2025
Here we look at the leading indicators in the world of economics.
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Modest activity growth in PMI鈥檚
The latest UK PMI data signals modest activity growth. The UK Services PMI rose to 51.1 in February, up from 50.8 in the month prior, marking its sixteenth consecutive month in expansionary territory. Meanwhile, the UK Manufacturing PMI fell to 46.4, from 48.3 in January.
Britain鈥檚 growing net zero economy
The UK's net zero economy is advancing rapidly, growing three times faster than the broader economy and generating £83bn in GVA in 2024, according to the CBI. The sector is highly productive, with output 1.4 times higher than the UK average. Productivity gains are strongest in Yorkshire & The Humber, where labour is 77% more productive than the regional average, followed by Northern Ireland and Wales (63%) and the South East (59%).
UK among NATO鈥檚 key defence spenders
Prime Minister Keir Starmer has unveiled plans to raise the UK鈥檚 defence budget, which currently accounts for 2.3% of GDP. The proposal calls for a gradual rise to 2.5%, in line with NATO鈥檚 expectations. Concerns remain over how the additional funding will be secured, raising questions about potential adjustments to Chancellor Reeves鈥� fiscal rules.
