Business News Round Up (11/03/2024)
Scottish private sector growth ‘gains momentum’
Output has continued to rise across the Scottish private sector midway through the opening quarter of 2024. While below the UK-wide average, Royal Bank of Scotland’s Business Activity Index rose to 52.1 in February, from 51.7 in January; signalling the strongest expansion in private sector output since last June. However, similar to that seen in January, growth in output was concentrated in the service sector. That said, a softer contraction in manufacturing output meant that the downward pressure on overall performance eased somewhat. Additionally, the employment picture again strengthened in February. Both the tracked sub-sectors of the economy recorded growth in staffing levels, with the overall rate of job creation ticking up to a nine-month high. The latest upturn was solely driven by a stronger uptick in new business received at service providers, with increased advertising and commencing of new projects.
https://www.insider.co.uk/news/scottish-private-sector-growth-gains-32303940
Businesses slow down hiring activity as uncertainty impacts jobs market
Permanent job appointments have continued to fall across the North of England new research points out. A study from KPMG looking at recruitment activity across the North East, Yorkshire & Humber and the North West revealed permanent hiring fell in February, making it a continuous fall of eight months. Uncertainty in the economy and reduced demand were marked as the reasons for the slump, though the downturn was less pronounced than at the national level. Meanwhile the number of permanent vacancies across the North also fell, stopping a three-year growth period. Businesses wanting greater certainty was cited as reason behind the move but at the same time the data pointed to a rise in the availability of permanent staff as job seekers sought out positions that gave them more security in uncertain times. The report showed a drop in temporary billings for the first time in four months.
https://www.business-live.co.uk/economic-development/business-slow-down-hiring-activity-28781987
GDP data to show UK recession was ‘short-lived’
Figures due this week should confirm that the UK recession was short-lived, providing some relief for Rishi Sunak’s under pressure government. The UK economy the UK entered into a technical recession at the end of last year and Pantheon Macro believes the January data, to be published on Wednesday, will show the UK “leaving last year’s minor recession firmly behind”. The consultancy adds that the 3.4% jump in January retail sales will explain “almost all” of the 0.2% month on month expansion. Furthermore, Pantheon is of the view that strength in the upcoming release will not be a “flash in the pan” given that PMI data has continued to recover since October. Shares in housebuilders rose on hopes of early interest rate cuts and enthusiasm that followed Barratt’s bid for Redrow. The mood has softened as rate cuts have yet to come through and some lenders have raised mortgage rates.
https://dailybusinessgroup.co.uk/2024/03/gdp-data-to-show-uk-recession-was-short-lived/
Momentum builds in North West private sector, latest data shows
Momentum continued building across the North West private sector economy in February, with business activity rising for the second month running and at the quickest rate since April last year, the latest Regional PMI survey from NatWest showed. The upturn was driven by stronger demand and helped lift business confidence to its highest for eight months. Employment held steady, however, with firms coming under pressure from rising input costs. The headline North West PMI Business Activity Index moved further above the critical 50.0 mark in February, rising from January’s 51.5 to a 10-month high of 52.7. The rate of growth signalled by the index was only slightly below the UK-wide average (53.0). February’s survey pointed to a pick-up in demand across the North West private sector, with firms in the region reporting inflows of new business rising for the second month running and at the fastest rate since May 2022.