Business News Round Up (08/04/2024)
Scottish commercial property investment ‘bounces back’ in Q1
Investment in Scotland’s commercial property market has rebounded during the first quarter of 2024, according to analysis from Knight Frank. The commercial property consultancy’s figures showed total investment volumes rose by 53% on the same period last year, increasing from £251 million to £383 million. Retail property accounted for 56% of investment volumes, largely because of the sale of Aberdeen’s Union Square for a reported £111 million. Hotels accounted for another 17% and offices represented 15%. The sale of Union Square also helped Aberdeen record its best first quarter in the last five years, with £140 million of deals. Glasgow saw a strong rebound from last year too, up from £49 million to £109 million – a 123% increase. So far this year, listed property companies have accounted for 43% of investment, with international investors at 30% – well below their five-year average of 57% – and private capital representing 27%.
UK economy: business output at highest level since May 2022 as recovery continues
Business surveys are pointing to a bright next few months for the UK as the economy finally feels the benefit of falling inflation. Economic output climbed to its highest level since May 2022 in March, according to the BDO Business Trends report, which collects and regroups data from the UK’s main business surveys. The accountancy’s output index climbed to 102.39, above the 100 no-change mark for the first time since July 2022 and comfortably higher than the 98.67 recorded in February. The improvement was driven by increased consumer demand, reflecting lower inflation, and supportive fiscal policy. Kaley Crossthwaite, partner at BDO, said the data illustrates the UK’s “robustness in the face of global economic adversities”. BDO’s survey comes ahead of the GDP figures for February, which will be published on Friday. Economists expect the economy to have grown 0.1% in February following a 0.2% expansion in January.
Further drop in permanent placements amid worsening demand for labour, according to latest jobs report
The latest Royal Bank of Scotland Report on Jobs survey, compiled by S&P Global signalled a sustained deterioration in permanent staff placements across Scotland during March. Although the rate of decline eased from the month before, the number of people placed into permanent roles fell rapidly. Demand for both permanent and temp workers also deteriorated sharply and for the eighth successive month. Additionally, pressures on salaries and hourly wages were historically muted, the former recording the weakest increase in over three years. Scottish recruiters recorded a fourth consecutive monthly fall in permanent staff appointments during March. The rate of contraction eased slightly from February’s 15-month high but remained rapid overall. According to respondents, the latest downturn was linked to fewer vacancies, companies looking to cost-cut and increased market uncertainty. Permanent placements also fell at the UK level, although at a softer pace than that seen in Scotland.
41% of senior execs foresee AI-driven workforce reductions
AI is projected to reduce workforce numbers across various industries in the next five years, according to a new survey. According to a recent survey conducted by the staffing provider Adecco Group, based on a survey of senior executives from 2,000 large companies worldwide, 41% foresee a reduction in their workforces due to advancements in AI technology. This trend is driven by the emergence of generative AI, capable of producing text, photos, and videos in response to open-ended prompts, sparking both optimism for eliminating repetitive tasks and concerns over job obsolescence. However, AI can also lead to the creation of new jobs, and as AI continues to reshape industries, the pressure for businesses to adapt and embrace its potential becomes increasingly evident. Adecco’s survey serves as a call to action for organisations to proactively navigate the landscape and use the transformative power of AI to drive sustainable growth and innovation.
https://www.digit.fyi/41-of-senior-execs-foresee-ai-driven-workforce-reductions/