Business News Round Up (10/12/2020)
Find out more about Where Now Consulting. We update our business news daily.
UK growth slows again in October as rebound stalls
The UK economy grew by just 0.4% in October as the recovery continued to slow. The economy remains well below the size it was before the pandemic began, the Office for National Statistics (ONS) said. The UK has been recovering from a record slump earlier this year induced by the first coronavirus lockdown. But output is expected to shrink again in November after England’s second shutdown forced firms to close. The ONS said there had been some areas of growth during October but the UK economy “still remains around 8% below its pre-pandemic peak”. October was the sixth consecutive month of growth for the UK after the economy contracted by a record 19.5% in April amid the first lockdown. The economy initially rebounded at a record rate, and grew by 10.2% in the August to October period compared with the previous three months. But growth has begun to slow – slipping from 1.1% in September – and the economy remains fragile, with unemployment continuing to surge.
https://www.bbc.co.uk/news/business-55246706
Rise in manufacturers selling direct to consumers will boost the economy, new research shows
A significant rise in manufacturers selling direct to consumers (D2C) will provide a £2.5 billion boost to Scottish industry’s coffers by 2023, according to research by Barclays Corporate Banking. The new report ‘A direct approach’ combines polling of manufacturers, logistics firms and consumers with detailed economic modelling to assess the impact of D2C sales, where traditional channels of distribution such as retailers and wholesalers are bypassed. The results show that a surge in Scottish shoppers going direct will mean sales through this channel total £9.7 billion in 2023 – an increase from £7.2 billion this year. The growth is being driven by consumer choices exacerbated by the pandemic; the research shows. Three fifths (60%) of Scots surveyed said they now frequently go direct to manufacturers because they believe they will get a better price (32%) and better service (25%). In addition, two fifths (40%) of consumers are buying direct as a conscious decision to support the UK manufacturing sector.
https://www.insider.co.uk/news/rise-manufacturers-selling-direct-consumers-23142756
Effective adoption of digital technology underpins businesses’ response to COVID-19
Increased adoption of new digital technology has underpinned businesses’ response to COVID-19, with four in ten citing it as both vital to retaining jobs, and the ongoing viability of their business model, according to a new report from the University of Liverpool. Entitled A blueprint for digitally driven recovery from COVID-19, it is based on a survey of North West business leaders from a range of sectors, exploring the drivers behind this increased use, and the barriers to adoption many have overcome. The report also makes recommendations on where to begin when formulating a digital strategy, and how to harness new drivers presented by the pandemic to spark wider, long-term transformation. Crucially, more than half of businesses which have invested in new digital technology during the pandemic have already seen a return on investment. Controlling for video conferencing, which the report’s authors acknowledge was ubiquitous during 2020, it found almost 80% of businesses have increased investment in digital technology in direct response to COVID-19. A quarter have made major digitally-led changes to the way their business operates.
Second English lockdown sparks new decline in staff appointments in the North as candidate numbers soar
November’s second coronavirus English lockdown brought about a first decline in permanent staff appointments across the North for three months, new figures have revealed. The latest KPMG and REC report on jobs for the region showed a further – but softer – fall in demand for permanent workers, although temporary vacancies actually increased for the third month in a row. The report released on Wednesday said on the supply side, candidate numbers for both permanent and temporary roles continued to rise “sharply”, driven by the mass redundancies that have been announced since the start of the Covid outbreak. The report, compiled by IHS Markit based on responses to questionnaires sent to around 100 recruitment and employment consultancies in the North, said the decline in permanent staff appointments had been the first since August. Anecdotal evidence in the document said firms were hesitant to hire additional staff due to the Covid uncertainty.
https://www.business-live.co.uk/economic-development/second-english-lockdown-sparks-new-19424445