Business News Round Up (09/07/2024)
Private sector growth in Scotland slowed in June, RBS study says
Scotland’s private sector saw growth slow last month, the latest Royal Bank of Scotland (RBS) growth tracker has revealed. The study showed Scotland’s private sector rate of growth slowed to a five-month low, while output grew at a weaker rate across Scotland compared with the UK as a whole. That slowdown in private sector output was accompanied by a fresh fall in new business – the first seen in five months. Employment rose in the latest study period, but at the second-weakest rate since the current run of expansion began in February 2023. But the bank said the tracker, based on a panel of 500 service providers and manufacturers, showed inflationary pressures continued to fall as cost burdens rose at the weakest rate in 40 months. Projections for the year ahead outlook across Scotland remained optimistic and broadly in line with the long-run, average trend in June.
https://www.insider.co.uk/news/private-sector-growth-scotland-slowed-33195770
North West business activity buoyant, driven by region’s service sector
Business activity for North West private sector firms continued to rise at a solid rate during June. According to the NatWest North West Growth Tracker, the headline North West Business Activity Index registered 53.2 in June. This was down only fractionally from 53.4 in May and still comfortably above the 50.0 threshold that separates growth from contraction. In a sign of improving demand across the North West private sector, firms in the regions reported a sixth successive monthly rise in the inflow of new business in June. The rate of growth was the fastest recorded since April 2022.Although new work increased in both manufacturing and services, the latter was the main driver. Firms in the North West continued to take on additional staff during June, citing greater workloads and forecasts for higher activity in the coming months.
Scottish retailers faced ‘miserable’ sales performance in June
The retail sector suffered a “miserable trading performance” during June, according to the latest Scottish Retail Consortium (SRC) and KPMG figures. Sales across Scotland last month were down by 3.4% compared with June 2023, when they had grown by 11.3%. This is below the average decrease of 2.5% and below the 12-month average growth of 1.9%. When adjusted for inflation, the year-on-year decline was 3.6%. Scottish sales decreased by 2.9% on a like-for-like basis compared with June 2023, when they had increased by 8.5%. This is below the three-month average decrease of 2.1% and below the 12-month average growth of 1.6%. Food sales decreased by 1.1% versus June 2023, when they had increased by 15.8%. June was below the three-month average decrease of 1.2% and the 12-month average growth of 4.6%. The three-month average was below the UK level of 1.1%.
https://www.insider.co.uk/news/scottish-retailers-faced-miserable-sales-33198373
Record lending for Praetura in the first half of 2024
Manchester-based Praetura backed UK SMEs with a record amount of lending in the first half of 2024, while also bolstering its workforce. In the first six months of the year, the lending division – which comprises five companies – deployed 32% more finance than the same period in 2023. Overall it has lent a combined £1bn since being founded in 2013, supporting more than 6,500 businesses. Praetura Asset Finance’s deals were up in the first half of 2024 by a third as demand grew for alternative financing. This includes completing its largest deal yet, lending £5m in the construction sector. Elsewhere in the division, Kingsway Finance reported a 41% uptick in businesses supported in H1 2024 compared to H1 2023, while Praetura Commercial Finance Group recorded a 225% increase in funding. Zodeq, acquired in 2022, extended the division’s lending offering with its specialism in invoice financing for the recruitment sector.
https://www.insidermedia.com/news/north-west/record-lending-for-praetura-in-the-first-half-of-2024