Business News Round Up (06/12/2022)
Quarter of UK small business owners say cost of living has affected well-being
Small businesses owners in Britain are feeling the brunt of the rising cost of living on their mental health and income, according to research from HSBC UK. The British bank said 41 per cent of businesses reported rising inflation was the main threat to their company, followed closely by the decline in consumer spending and rising energy costs. Just over a quarter – 26 per cent – said cost-of-living worries had affected their mental well-being. In addition, HSBC noted more than half of small business owners are reluctant to talk about such threats, not even with friends or family. More than two thirds had not approached their bank about the situation and 29 per cent had used their personal savings to prop up their businesses. More than half had opted to research solutions online, rather than talking to someone. Behavioural psychologist Jo Hemmings said small business owners are facing a perfect storm. “It’s not surprising that many are struggling with their personal well-being and it’s understandable that some feel reluctant to open up about the challenges ahead. But business owners shouldn’t see talking through their personal or professional concerns as any kind of admission of failure and research shows that internalising anxieties will not help. They are not alone, and I’d urge those feeling the pressure of running a small business at this difficult time to talk through their challenges with professionals who can provide practical help, including their bank”, she added.
How lockdown changed Scotland’s high streets
Scotland’s high streets have more fast food outlets and beauty services but fewer clothes shops, research shows. New analysis by the BBC data team reveals the big changes to the retail and hospitality sectors across the country since lockdown. Scotland-wide, there are now 8% fewer clothes shops but 12% more fast food outlets since 2020. And in the city centre of Glasgow there are now more beauty service providers than pubs. The BBC Data team looked at every town and city across the UK to see how they had changed since March 2020. What emerged in Scotland was a picture of high streets transforming fast – squeezed by the Covid lockdown and the rise in demand for internet shopping and eating out. Traditional retail destinations have suffered the most. Edinburgh’s Princes Street lost 27% of its retailers since March 2020, while Clackmannanshire has 9% fewer shops than it did two years ago. Analysis of Ordnance Survey’s Points of Interest mapping data revealed other Scottish findings including: a 7% rise in tattoo parlours; the lost of more than one in ten cashpoints; a 9% rise in hair and beauty salons, including a 23% hike in Falkirk alone; the number of fish and chip shops increasing by 6%.
https://www.bbc.co.uk/news/uk-scotland-63865960
UK construction growth ebbs away as economy falters: PMI
Growth in Britain’s construction industry slowed to a crawl in November as high borrowing costs and the gloomy economic outlook crimped building work, a survey showed on Tuesday. The S&P Global/CIPS UK Construction Purchasing Managers’ Index (PMI) fell to a three-month low of 50.4 from 53.2 in October, barely above the 50 dividing line between growth and contraction. A Reuters poll of economists had pointed to a reading of 52.0. The housebuilding sector stagnated, while civil engineering activity deteriorated. The survey’s gauge of future activity sank to its lowest level since the onset of the COVID-19 pandemic, consistent with recession. “Survey respondents noted that new residential building projects had been curtailed in response to rising interest rates, cancelled sales and worries about the economic outlook,” said Tim Moore, economics director at S&P Global, which compiles the survey. The Bank of England has increased interest rates from 0.1% a year ago to 3% in November and looks likely to raise them again this month. With demand fading from the economy, various measures of price pressures from consumers and businesses have started to ease – including in Thursday’s survey.
Mixed Christmas outlook for North West Firms
A fifth of North West businesses expect higher revenues this Christmas compared to last year, according to the Lloyds Bank Business Barometer. However, more than half of firms said they do not feel fully prepared for the festive trading period. Despite high inflation, rising energy prices and a tighter labour market, 20 per cent of North West businesses expect higher revenues this Christmas compared to last year. However, more than half (55 per cent) said they are not yet fully prepared for the festive period. Those predicting a bumper festive period cited increased demand (19 per cent), while easing of trading was cited by 11 per cent of the region’s firms as they felt less affected by Covid-19 restrictions due to the Omicron variant last year. Those expecting a worse Christmas trading period said they were struggling with a decreased demand from their customer base (15 per cent). More than half of North West businesses surveyed said that Christmas was important for their future prospects (55 per cent), with in excess of a quarter of firms (28 per cent) reporting to be Christmas ready. When asked what could help firms prepare more effectively, 30 per cent said they wanted more support with rising costs, with 28 per cent saying that access to better and more efficient supply chains would help.
https://www.insidermedia.com/news/north-west/mixed-christmas-outlook-for-north-west-firms