Business News Round Up (04/01/2024)
New year offers reasons for optimism on economy, says analysts
Deutsche Bank analysts have pointed to prospective interest rate cuts, subsiding inflation, and real wage growth as reasons to be optimistic about the UK economy heading into 2024. “It’s hard for economists to be too optimistic at the start of any year,” the bank said in a research note. “But the new year brings some optimism and in the spirit of new beginnings, we look at eight things that add a silver lining to the economy in 2024.” Larger than anticipated drops in the prices of demand-sensitive goods and services have contributed to the recent weaker momentum of inflation across the board, the bank said, “not just energy and food”. Alongside this, household energy bills are expected to drop by as much as 15% in April, with reductions prompting savings of between £10 billion and £15 billion throughout 2024, as per Deutsche.
Almost one-in-four Scottish businesses report difficulty in recruiting
Almost a quarter of Scottish businesses reported facing recruitment difficulties in November. That’s according to an Office for National Statistics (ONS) survey, which found 24.5% of companies north of the border said they experienced difficulties recruiting employees. The figure was the highest for any part of the UK in the survey, which received responses from 9,555 companies, more than 1,000 of which were in Scotland. The UK average for the month of November was 20.7%. Among Scottish responses, 43.1% said they didn’t experience recruitment difficulties and 17.9% said they were not sure. The pro-union campaign group, Scotland in Union, said the SNP had created an “anti-business environment”. Chief executive Pamela Nash said: “It’s bad news for Scotland that almost a quarter of businesses reported challenges in recruitment. That suggests that the opportunities on offer aren’t matching up to the skills available in our workforce, letting down both jobseekers and businesses.”
https://www.insider.co.uk/news/almost-one-four-scottish-businesses-31803043
NW buyout drops for second year running
Buyout activity across the North West dropped for the second year in a row, new research has found, although the region was the third most active in the UK. Data from the Centre for Private Equity and Management Buy Out Research, which is based at Nottingham University Business School and sponsored by Equistone Partners Europe found that North West firms completed 15 deals. The figure was down 25% from 20 deals in 2022 and represents the second yearly drop from the region, following a record year in 2021 with 36 deals completed. However, the North West was the third most active region alongside the West Midlands and Yorkshire. Deal value also dropped in the year to £770m, down 19% on the previous year. In spite of this, some of the largest deals did originate in the region – including Inflexion’s £342m takeover of global law firm DWF Group.
https://www.insidermedia.com/news/north-west/nw-buyout-activity-drops-for-second-year-running
Boxing day boost for Scottish stores, but footfall still less than pre-Covid
Boxing Day shopper footfall was up more than 14% across Scotland’s retail destinations this year. High streets saw a 25% increase in shoppers on December 26 last year, while retail parks enjoyed a 9.4% rise compared with 2022, retail analysts MRI Software said. Shopping centres saw a 2.9% dip in visitors, however, and overall footfall remained 27.4% lower than pre-pandemic levels. The analysts said an increase in online shopping and fewer opportunities for retailers to make reductions on Boxing Day plus the continuing cost of living crisis could account for the lower figures. Going back further, MRI Software said December saw an overall 6.2% rise in shoppers visiting retail destinations from the previous month, predominantly boosted by the final trading week before Christmas. Shopping centres benefited the most with a 16.2% increase in buyers followed by retail parks (+6.2%) and high streets (+1.2%) but overall footfall was still down 1.9%.
https://www.insider.co.uk/news/boxing-day-boost-scottish-stores-31803082