Business News Round Up (02/08/2021)
Business confidence slips as reopening delayed
Business confidence in the Scottish economy fell most across the UK regions during July as the easing of restrictions was delayed by three weeks. Despite the overall slip in confidence, some sectors such as hospitality and transport showed sharply higher levels of optimism as the economy reopened and the sun shone, according to the latest Business Barometer from Lloyds / Bank of Scotland Commercial Banking. There was a lower confidence in companies’ own business prospects month-on-month, down nine points at 33%. A net balance of 13% of businesses in Scotland expect to increase staff levels over the next year, down five points on last month. The barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. Businesses in the North East of England (40%), East Midlands (38%) and North West (38%) were the most optimistic overall. Scotland (down 14 points to 28%), East of England (down 11 points to 25%) and Wales (down nine points to 12%) reported the biggest falls in confidence but all retained an overall positive reading.
UK factories lose a bit more pace in July, prices rising – PMI
Britain’s factories reported a further slowing of growth in July – although it was still one of the fastest paces on record – as they struggled with staff shortages and supply chain problems caused by the COVID-19 pandemic, a survey showed on Monday. The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) dipped to 60.4 from June’s 63.9. The July reading was unchanged from a preliminary “flash” figure. The index peaked at an all-time high of 65.6 in May as the sector – which accounts for about 10% of British economic output – rode a wave of demand the coronavirus lockdowns were lifted. Growth in output and new work eased to four-month lows in July and some firms reported clients brought forward purchases to guard against supply-chain issues. 72% of manufacturers reported higher costs for a wide range of inputs such as chemicals, commodities, cardboard, electronics, foodstuffs, metals, packaging, and timber, with Brexit causing problems alongside the pandemic.
https://www.reuters.com/world/uk/uk-factories-lose-bit-more-pace-july-prices-rising-pmi-2021-08-02/
North West business confidence soars
Business confidence in the North West grew nine points in July to 38 per cent, the second highest of any UK region or nation. Lloyds Bank’s Business Barometer for July 2021 said companies in the North West reported higher confidence in their own business prospects month-on-month, up 14 points at 39%. When taken alongside their optimism in the economy, up three points to 37%, this gives a headline confidence reading of 38%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. A net balance of 23% of businesses in the region expect to increase staff levels over the next year, up eight points on last month and the highest reading since October 2018. Overall UK business confidence dipped three points to 30% in July but remains well above the year-to-date average of 19%.
https://www.insidermedia.com/news/north-west/north-west-business-confidence-soars
Scottish shop vacancies spike by a quarter year-on-year
In the second quarter the Scottish retail vacancy rate increased to 16.1% from 15.3% in the first quarter. The Scottish Retail Consortium (SRC) and Local Data Company figures showed that this was was 3.2% higher than at in the same point in 2020. Shopping centre vacancies rose to 21.5% from 20.1%. in the first quarter this year. On the high street, vacancies increased to 14.5% in the second quarter of 2021, from 13.9% during the first three months. Retail Park vacancies also increased to 14.1%, up from 12.9% in the first quarter. However, it remains the location with the lowest rate of empty shops. SRC director David Lonsdale pointed out that almost one in every six retail premises now lying empty. “The vacancy rate stood at a new six-year high, up by a quarter over the past year, and it is far from clear that it has reached its apogee.”
https://www.insider.co.uk/news/scottish-shop-vacancies-spike-quarter-24643960