Business News Round Up (04/08/2020)
Highland businesses lose faith in economy following pandemic
Businesses in the Highlands and Islands have reported a decline in confidence in Scotland’s economic future, according to a new survey. The latest Business Panel survey for June, commissioned by Highlands and Islands Enterprise (HIE), showed that 79% of respondents reported their confidence in the economic outlook in Scotland had fallen in the past six months. This is the most marked decline in the 16 business panel surveys HIE has commissioned since 2014. Analysing the implications of the pandemic, 85% of businesses experienced a decline in trade with 24% generating no sales at all, however, just 4% of firms reporting an increase on trade as they continued operating during lockdown. More than two thirds (70%) of firms applied for financial support through the Scottish government to help keep their business afloat, with 91% of those proving successful in receiving assistance.
North West businesses expect slow recovery – report
Almost half of companies in the North West believe it will take between one and three years to return to the same levels of revenue achieved before Covid-19, according to a new BDO business poll. Growth remains important in the region, with 58% of medium-sized businesses intending to take on more apprentices as a result of the government’s move to provide companies with £1,000 for each apprentice they take on. Despite challenging trading conditions, companies have continued to invest in growth, with almost 30% of companies in the North West acquiring another business since lockdown began and 32% automating processes previously done manually.
https://www.insidermedia.com/news/north-west/north-west-businesses-expect-slow-recovery-report
Only one sector of the Scottish economy still reporting yearly rise in turnover
Food retail is the only area of the Scottish economy performing favourably, according to new research. The Scottish Government’s Monthly Business Turnover Index for June found a value for all included sectors of 24.6. Whilst this represented an increase on May’s 23.3, it remains below the expected index range of 45 to 55 seen since 2011. Food retail is the only sector in the country to have seen a rise in turnover last month with an index value of 58, with nine of the total 10 sectors measured reporting drops. Accommodation and food services sector was the worst hit area of the economy with an index value of 5, as the majority of businesses in this sector remained closed during this period.
https://www.insider.co.uk/news/only-one-sector-scottish-economy-22448163
NatWest Tourism Business Barometer launched across the North as firms report huge losses
Tourism boards across the North have launched a new business barometer measuring the post-lockdown environment as economies begin to recover from the Covid-19 crisis. Led by Marketing Manchester, nine tourism boards from Liverpool to Durham have launched the fortnightly NatWest Tourism Business Barometer, which will study aspects such as shifts in employment, trends in revenue and overall confidence. Supported and funded by NatWest Group, it will run for three months until the end of October, with the various Destination Management Organisations (DMO) having agreed to recruit panel members from within their tourism economies to participate in surveys.