Business News Round Up (11/07/2024)
Scotland secures record number of foreign direct investment projects
The number of foreign direct investment (FDI) projects secured by Scotland increased to a record 142 in 2023 – a 12.7% rise on 2022. Scotland is second to London in securing inward investment projects for the ninth consecutive year, according to EY’s Scotland Attractiveness Survey. Projects in the UK rose by just 6%, while Scotland’s FDI saw a rise to 14.4%, up from 13.6% in 2022. It is the fifth consecutive year of increase and its highest over the past decade. The US remained the biggest originator of FDI projects, accounting for 27 (19%) of Scotland’s during 2023. Meanwhile, projects from Germany doubled to a decade-high of 20, making it the second largest source of projects into Scotland. The report also showed that utility supply is the leading sector in Scotland, with 40 projects secured in 2023 and a rise of 81.8% on the 22 secured in the previous year.
https://www.insider.co.uk/news/scotland-secures-record-number-foreign-33208753
Level of foreign direct investments into Manchester declines, new report shows
Manchester has seen a decline in the number of foreign direct investments (FDI) it attracted last year, although Liverpool managed to increase its volume of FDIs. The latest UK Attractiveness report issued by EY today (July 11) showed that Manchester attracted a total of 31 FDI projects last year, with only Edinburgh (32), Birmingham (67) and London (353) surpassing the city’s total. However, this was a lower total than the 45 FDI projects Manchester attracted in 2022, representing a 31% fall. Liverpool was the UK’s 16th-best performing city for attracting FDI in 2023 with a total of nine projects, up from seven in 2022. The North West was ranked the UK’s fourth-best performing region for attracting FDI with a total of 68 projects in 2023. Regionally, only Greater London (359), Scotland (142) and the West Midlands (127) attracted more FDI projects than the North West last year.
UK economy grows at faster rate than forecast
The UK economy grew by 0.4% in May, faster than expected, to give the new Labour government encouragement that momentum will be maintained throughout the year. All sectors showed expansion, but this could persuade the Bank of England to hold off cutting rates next month. Huw Pill, the chief economist at the Bank of England said the UK economy is still suffering from “uncomfortable strength” in wage growth and service sector inflation. However, he admitted that it was still a question of “when not if” the Bank would cut interest rates this year. Liz McKeown, of the Office for National Statistics, said many retailers and wholesalers had a good month in May. “Construction grew at its fastest rate in almost a year after recent weakness, with house building and infrastructure projects boosting the industry,” she added.
https://dailybusinessgroup.co.uk/2024/07/uk-economy-grows-at-faster-rate-than-forecast/
New ‘venture studio’ in Glasgow to support growth of city’s tech ecosystem
A new ‘venture studio’ in Glasgow aims to support the growth of the city’s tech ecosystem – helping founders to start and scale up their businesses. Entrepreneurs will be able to tap into the council and government-backed scheme to develop new ideas, products, and business models into high growth companies. The innovation-focused initiative was launched by Glasgow City Innovation District (GCID), a city centre development cluster located in and around Strathclyde University. GCID has been home to numerous spinouts and startups from the tech sector in recent years – driving growth for the city in high-growth industries such as engineering and technology. Venture Studio aims to consolidate that growth, by assembling teams of founders, designers, developers, and other experts within the studio to create, validate, build, and scale new business ideas. The pilot is being supported by Glasgow City Council and the UK Government’s Shared Prosperity Fund.