Business News Round Up (09/05/2022)
Scottish private sector growth accelerates to 11-month high
Business activity improved for the 14th consecutive month in April, according to the latest Royal Bank of Scotland PMI figures. The bank’s Business Activity Index – a measure of combined manufacturing and service sector output – rose to 58.9 in April, up from 58.4 in March, indicating a faster increase in private sector output. The latest uptick was supported by a strong and renewed upturn in manufacturing production, although a sharp expansion in services activity was recorded once again. The rate of growth across Scotland accelerated for the fourth consecutive month to the quickest since last May. According to surveyed firms, greater client demand was mainly driven by reduced pandemic restrictions. Respondents were largely positive with regards to activity expectations over the coming 12 months, amid hopes of a continued economic recovery as Covid-19 disruptions subside, encouraging higher client demand and investment. That said, the degree of optimism across Scotland hit an 18-month low and posted below the UK-wide average as firms grew concerned about the economic impact of inflation.
https://www.insider.co.uk/news/scottish-private-sector-growth-accelerates-26892510
New initiative to drive growth and innovation
A new initiative is being launched with an aim to support 500 start-ups and create more than 1,000 jobs in Greater Manchester. Barclays Eagle Labs, in partnership with Plexal, Lancaster University and The University of Manchester, is launching the Digital Security Hub (DiSH). It aims to help drive innovation and growth in Greater Manchester and the wider UK’s digital and cyber security sectors The DiSH proposition will be headquartered in Manchester in an 11,000 sq ft space in Heron House, due to open in the summer, but accessible virtually UK-wide. The space, available for co-working or private office space for businesses and entrepreneurs, will provide access to networking opportunities, business growth programmes and mentorship from industry experts. The consortium of partners, appointed by Manchester City Council, will also provide a range of cyber and digital educational initiatives across the Greater Manchester Combined Authority. This will include training and support for businesses, business owners and employees through workshops and seminars and upskilling more than 1,000 individuals in the next five years. This is to help them access opportunities in the growing sector, with a focus on deprived local communities to promote social mobility through innovation.
https://www.insidermedia.com/news/north-west/new-initiative-to-drive-growth-and-innovation
Food and drink firms fill Covid and Brexit void
Food and drink companies across Scotland are recovering from the challenges of the pandemic and Brexit with manufacturers taking advantage of new trading relationships around the world, according to new research. Contrary to stark warnings of meltdown from lockdowns and Border trade bureaucracy, Scotland, Wales and the North East of England, had the strongest recovery in response to the supply chain problems caused by COVID and the new UK-EU trading relationship. The share of exports to non-EU markets is increasing in Scotland, and there are big opportunities to drive further export growth through new trade deals with increased market access, the report from the Food and Drink Federation has found. However, it states that more can be done to improve the implementation of the UK-EU trade agreement, to help companies recover exports in the EU alongside growing market share in other global markets. The report shows that Scotland accounts for the largest share of UK food and drink exports at almost 30% of total exports. Worth £5.7bn exports are up by nearly 15% since 2020.
‘Economy continues to strengthen’ despite squeeze from rising costs
The North West region recorded its fastest upturn in business activity since July last year, the latest NatWest PMI surveys of UK businesses have shown. The economy showed strong signs of recovery in April despite increasing price pressures, with average charges for goods and services rising at a record rate as local firms sought to offset soaring costs. Employment levels continued to rise strongly in the region, although the pace of job creation eased to the slowest this year, in line with a drop in business confidence towards the outlook. The headline North West Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – climbed to a nine-month high of 58.7 in April, up from 56.9 in March. This signalled a sharp and accelerated rate of growth and went against the broader UK-wide trend. Latest data showed a sustained improvement in the level of demand faced by firms in the North West, with inflows of new work rising for the fourteenth month running amid reports of growing sales opportunities. The rate of expansion eased to a three-month low, although it remained robust by historical standards and was quicker than the UK-wide average.