Business News Round Up (06/02/2024)
Private sector expansion bolsters UK economic outlook despite manufacturing decline
The latest data reveals that the UK’s private sector experienced stronger expansion than initially estimated in the previous month, sparking optimism amidst expectations of easing inflation and potential interest rate cuts, paving the way for enhanced economic growth. According to the final composite PMI jointly released by S&P Global and the Chartered Institute of Procurement and Supply, January witnessed a notable increase to 52.9 from December’s 52.1, surpassing initial projections of 52.5. This marks the third consecutive month that the composite reading has remained above the pivotal 50-point threshold, indicating expansion rather than contraction. The services sector, in particular, saw a significant uptick, reaching 54.3 in January compared to December’s 53.4, outstripping the initial estimate of 53.8. However, manufacturing activity continued its downward trajectory. Buoyed by expectations of a brighter economic landscape, both households and businesses have shown renewed spending enthusiasm, leading to a surge in recruitment activities among companies.
Renewables produce 113% of Scotland’s electricity demand in 2022 for the first time
Renewable technologies produced 113% of Scotland’s electricity demand for the first time in 2022, according to new data released by Scottish Renewables. New statistics released last month revealed that renewable sources generated 26% more (roughly 35TWh in total) than the preceding year. This supersedes Scotland’s now non-official renewable electricity target of 100%. Electricity consumption for gas and electricity in Scotland on the other hand, decreased by 8% and 4% respectively. For gas, this was caused by a 13% decrease in electricity consumption in the domestic sector and 0.5% in the non-domestic sector compared to 2021, whilst electricity consumption in the domestic and non-domestic sectors decreased by 9% and 1% respectively. Claire Mack, chief executive at Scottish Renewables called the renewable productions figures a “major milestone on Scotland’s journey to net-zero”.
UK retail sales growth slowed in January, industry data shows
Growth in UK retail spending slowed in January, according to new industry data that suggests households continue to be squeezed by the cost of living crisis. The value of retail sales rose by an annual rate of 1.2% in January, the British Retail Consortium said on Tuesday. This was below the 1.7% growth in December and the three-month average of 1.9%, according to the trade body’s figures. The rate of growth was also below the 4% rate of consumer price inflation in December, indicating that the rise in sales masked a drop in volume, a trend seen for the past three years. “Weak consumer demand led retail sales growth to slow,” said BRC chief executive Helen Dickinson. “While the January sales helped to boost spending in the first two weeks, this did not sustain throughout the month.”
https://www.ft.com/content/a4b97ab4-1aa9-4df3-8b86-9d3efeec2fb3
Scottish SMEs receive £1m support to explore additive manufacturing
A £1 million project has encouraged more than 100 small to medium sized enterprises across Scotland’s manufacturing industry to explore the potential of additive manufacturing techniques – industrial 3D printing – that could add value and open up new commercial opportunities. The three-year Additive Manufacturing Business and Technology Support (AM-BATS) project has helped small businesses across a range of different sectors to learn more about how to design and adopt new processes, with the end goal of developing more sustainable products and entering new markets. The programme was delivered by National Manufacturing Institute Scotland (NMIS) –operated by the University of Strathclyde and part of the High Value Manufacturing Catapult (HVMC) – and was funded through the Scottish Government’s Advancing Manufacturing Challenge Fund via the European Regional Development Fund. From renewable energy and electric vehicles to food and drink, sports, oil and gas, and medicine, 36 projects took place involving different ambitious manufacturing businesses.