The UK economy slowed significantly during 1998. Consumer spending, together with some deterioration in net exports, has led the way. However, investment expenditure, particularly by the manufacturing sector, is expected to reinforce this in 1999. The continuing strength of the pound has reduced exports and encouraged imports but at the same time has moderated inflationary pressures.
Employment is projected to recover after short term job losses.
Many of the additional jobs will be of a part-time nature. The labour force is forecast to rise, particularly reflecting the increasing participation of women in the formal economy. Trends towards earlier retirement and increased participation in full-time education offset this, especially for males. The industrial structure of employment is expected to shift further away from primary and manufacturing industries and towards the service sector, notably those parts connected with tourism and leisure and those providing business services. More jobs are projected but mostly of a part-time nature.