Business News Round Up (06/04/2020)
Lockdown is costing £2.4 billion a day to the UK economy
The UK lockdown is costing the economy £2.4 billion a day, a new survey has revealed. The Centre for Economics and Business Research (CEBR) found the manufacturing sector is set to see the highest fall in output, as workers producing goods and services that are deemed non-essential have ceased trading and as export and domestic demand has fallen sharply. The accommodation and food services sector, non-food retail and construction sector are also expected to be disproportionately impacted. CEBR estimate GVA per day falls of £172 million (79% of pre-crisis levels), £156 million (55%) and £237 million (50%) respectively. This is estimated to be costing the economy over £500 million per day, with production in the sector down 69%.
https://aboutmanchester.co.uk/lockdown-is-costing-2-4-billion-a-day-to-the-uk-economy/
UK consumer confidence suffers record fall over coronavirus
Consumer confidence in the UK plummeted in the last two weeks of March in the biggest drop in more than 45 years as a shutdown of the economy to slow the rapid spread of the coronavirus hits financial confidence, according to a new survey. GfK conducted a survey of British consumer sentiment and found confidence fell by 25 points to minus 34, the index’s lowest reading since February 2009 and the biggest single drop in the index’s history, which dates back as far as 1974. The biggest decline in the GfK survey came in households’ willingness to make major purchases, despite a spike in demand for freezers, televisions and home office equipment as people prepared to spend most of their time at home.
London most costly city in the world for construction
London is the most expensive city in the world for construction, according to a new report from consultant Arcadis. According to the latest International Construction Costs report London ranked first ahead of New York (2nd) and Hong Kong (3rd). Outside of London, UK cities are well represented in the top 25. Edinburgh ranked in 10th place, cementing its position as a regional hub for attracting international trade and investment, followed by Manchester (16th) and Birmingham (24th) after surges in activity across sectors indicating a booming local construction market.
Scotland’s wind power growth at a standstill
New Scottish Government figures have revealed the country’s wind power industry stalled in the second half of 2019. The figures revealed no new net capacity was added between June and December of 2019, with industry leader warning that Scotland needs to increase its output fourfold if it is to shift its home heating and transport sectors away from fossil fuels. Installed capacity for Scottish renewable energy stood at 11.8 gigawatts (GW) in December, up from 11GW a year earlier but the same as in June. This is the first time the industry has stood still since its technology began to go mainstream.
https://www.heraldscotland.com/news/18360362.scotlands-wind-power-growth-standstill/