Business News Round Up (08/01/2024)
Manufacturers more optimistic about UK as a base of operations than a year ago
Manufacturers are more optimistic than a year ago about the UK’s attractiveness as a country to locate operations but still fear it will lose ground to India, China, and the US. Almost half of respondents also said they expected conditions in the sector to improve in 2024, more than double those forecasting a deterioration, according to an annual survey of 205 manufacturers by industry body Make UK and consultancy PwC. The findings, published on Monday, paint a more optimistic outlook from a sector that has been blighted in recent years by soaring costs, a tight labour market and supply chain disruption. Just over half of companies surveyed said the UK would be a competitive location for manufacturing activities in 2024, up from 31 per cent a year ago in the aftermath of the market chaos unleashed by radical budgetary plans by Liz Truss’s short-lived administration.
https://www.ft.com/content/39adf573-08e6-4b63-a07e-fc63cf80704b
Scottish jobs market slows further amid economic uncertainty
The number of people in Scotland starting new full-time jobs fell last month at the fastest pace recorded since April as growing economic uncertainty weighed on hiring decisions and discouraged workers from seeking new roles. The latest Report on Jobs out today from the Royal Bank of Scotland also found that despite waning demand among employers, a shortage of suitable candidates continued to push up starting salaries. However, the rate of inflation “eased notably” from November. Wage growth among temporary workers also softened as billings for temp workers rose further. Sebastian Burnside, chief economist at the Royal Bank of Scotland, said the subdued economic environment and signs of further declines in vacancies suggest that hiring activity will remain weak heading into 2024. However, slower rates of pay growth – particularly for permanent starters’ salaries – should ease the pressure on employer’s budgets.
https://www.heraldscotland.com/news/24031446.scottish-jobs-market-slows-amid-economic-uncertainty/
UK consumers continue to cut spending for 2024
While the narrative around the UK economy has bordered on optimism in recent months – with stats suggesting wage growth is finally outpacing inflation – consumers are feeling they are less secure than they were a year ago. Compared to 2023, more than four-in-ten feel less financially stable heading into 2024. Even as experts point to the ‘cautious optimism’ inspired by inflation falling, few UK consumers are finding the opportunity to ease off spending cuts. The ONS found that the average wage growth in the UK rose above inflation in August, but it was the first time that had happened in two years. Meanwhile, the fact most employers did not keep pace with inflation has left the average household more than £2,300 worse off – which a couple of months of quicker wage growth have not come close to making up for. At the same time, not all employers are granting pay-rises.
https://www.consultancy.uk/news/36242/uk-consumers-continue-to-cut-spending-for-2024
Stewart Milne North West seeking administrator
Stewart Milne Homes North West England has filed a notice of intention to appoint an administrator. The business is the English division of the Aberdeen-based house builder. Latest results for the North England West business, based in Manchester, show a turnover of £45.9m for the year to 31 October 2022, generating a pre-tax loss of £1.1m. The whole group was put up for sale in April 2022 when its founder and main shareholder Stewart Milne decided to retire after nearly 50 years at the helm. But later that year the sale process was put on a pause amid the economic turmoil that followed the mini budget introduced during Liz Truss’s brief reign as prime minister. The company confirmed last year that it was again seeking a buyer after posting group results for the year showing a £16.5m pre-tax profit from turnover of £172.3m.
https://dailybusinessgroup.co.uk/2024/01/stewart-milne-north-west-seeking-administrator/