It ‘s been a busy start to the year, with new clients, new events and new businesses all happening at once! Hence, it’s been a little quiet on the Diary blog feed however, I’ll be picking up the pace and wanted to start off by sharing some great insight with you from MPI’s January event held at 30 Euston Square last week.
We had the opportunity to get our macroeconomic heads on with Jack Kennedy from Markit Economics, and overall it’s looking rosy for us event professionals as we get down to business in 2016.
The Bank of England sees a steady growth path in the financial markets and doesn’t expect an interest rate increase until 2017. Consumer spending is on the up, business investment is rising 7.8% above the pre-crisis peak and the labour market is tightening.
Near-zero inflation rates are giving a boost to real pay, meaning average earnings are picking up whilst inflation is falling.
The UK economy ended 2015 with reasonable growth momentum, with broad-based growth across the services and construction sectors however, manufacturing is slowing and public sector spending is set to fall a further 5% by 2019.
The main driver of global GDP has been within the developed markets with emerging markets the likes of China, Russia and Brazil currently holding back growth. The US economy however, is showing signs of faltering with their slowest growth the past 3 years whilst the Eurozone has just seen it’s best quarter for 4 and 1/2 years.
So what’s the outlook for marketing spend in 2016/17? Overall we should expect to see a 24.6% increase, and mainly in direct marketing 12.4%, media advertising 7.5%, events 3.8%, sales promotion 3.1% and PR 1%, with market research and other marketing channels expecting a decrease.
The overall outlook:
- Steady growth with low inflation
- Unemployment falling further
- Stronger pay growth and boosts to disposable incomes
- Positive outlook for marketing budgets
- Emerging markets
- EU referendum
- Interest rates
- Geopolitical influences
Overall it’s a positive outlook for the UK events industry and I’m feeling optimistic, long may it continue!
Until next time #eventprofs…