The UK economy has mounted a strong recovery over the past year and we expect this to continue in 2014-15. Most sectors and regions of the economy are now showing positive growth trends, with recent signs that business investment is also starting to pick up. In the longer term, reshoring could also boost output and employment in both manufacturing and services.
However, while the recovery has been rich in jobs, it has been poor in productivity and wages. Median real household incomes remain well below pre-recession peaks and can only be expected to recover gradually over the next few years.
Therefore, while the economy as a whole is firmly on the road to recovery, it may be some years before many low and middle earners feel the recession is really over.