UK Industry Top 5

1) Travel & Leisure

Could be in for a better year. Consumer spending is moving slowly upwards, wages are increasing and those that have improving disposable income are expected to become a little bolder towards spending on holidays and recreation. Global terrorist threats may mean more will spend their disposable pounds on UK holidays. This will be good for Merger and Acquisition activity in the mid-market and we remain positive about capital spend in the sector.

2) Housebuilding – 180,000 New Homes?

This market remains in a good position for 2016. Increasing disposable income, low mortgage rates and efficient government schemes all point towards housebuilding firms being willing to invest while profits remain strong. However, 180,000 new homes this year may be a target too far!

3) Defence

This sector has been under threat in recent years, but with increasing threats from terrorism, tensions in the Middle East and around the Russian border, defence has moved up the political spectrum and this will help the large contractors and their huge list of suppliers. Expect more market activity, bigger budgets and an increase in M&A activity, particularly in the area of technology.

4) TechnologyDo the Geeks have it?

Mobile and ‘Internet of Things’ (IOT) services will again drive success in this sector. Technology involved in homes, work and social lives will continue its upward march. However, as attractive as consumer technology is, technology in healthcare, defence, financial services, aerospace and the automotive sector will also grow at double digit rates, Goldman Sachs has recently published its research finding on capital spend in the global economy to 2017 and IT, Software, Technology and Internet Services occupy 4 out of the top 5 growth areas worldwide. Britain is blessed with an ever increasing army of geeks. Well done the geeks, we depend on you.

5) Healthcare

Global spending is set to increase on healthcare products, healthcare services and medicine. An ageing global population, increasing life expectancy, high cost inflation in the sector, the emerging middle class in developing markets and great innovations in technology are all impacting growth in the sector. The industry is also hugely fragmented and we expect increasing consolidation and M&A activity throughout 2016.