Business News Round Up (11/07/2025)
UK economy unexpectedly contracted 0.1% in May
The UK economy unexpectedly contracted 0.1% in May, the second monthly decline in a row, in a sign that the strong growth seen earlier in the year has dissipated. Friday’s figure from the Office for National Statistics followed a contraction of 0.3% in April and was well below the 0.1% growth forecast by economists polled by Reuters. May’s decline, driven by falls in production and construction, points to a sharp slowdown in the second quarter after the rapid growth of 0.7% in the first three months of the year. The pound fell 0.2% against the dollar to $1.35 following the data release.Professor Joe Nellis, economic adviser at accountancy and advisory firm MHA, said the figure was “a far cry” from the first quarter, when a surge in exports and a robust performance in the services sector placed the UK among the G7’s top performers.
https://www.ft.com/content/08002acf-52eb-4fb1-a93b-0b2974a1182c
North West business confidence rises in June, as more firms plan to hire
Business confidence in the North West rose by three points during June to 55%, according to the latest Business Barometer from Lloyds. While companies in the region reported lower confidence in their own business prospects month-on-month, down two points at 52%, their optimism in the economy rose eight points to 57%. Taken together, this gives a headline confidence reading of 55% (vs. 52% in May). A net balance of 59% of North West businesses also expect to increase staff levels over the next year, up 13 points on last month. Looking ahead to the next six months, businesses in the region identified their top target areas for growth as investing in their teams, for example through training (44%), evolving their offering, for example by introducing new products or services (38%) and entering new markets (35%).
British Business Bank backs diverse and emerging fund managers with £500m package
The British Business Bank has announced a new £400 million Investor Pathways Capital initiative which will support diverse and emerging fund managers across the economy and make it easier for new entrants, particularly those from underrepresented groups, to break into venture capital. The initiative, which will capture the value of a more inclusive investment ecosystem, is expected to launch in 2026. The Investor Pathways Capital initiative will operate across three pillars. It will back more diverse fund managers through the British Business Bank’s Enterprise Capital Funds programme, invest in micro funds to support small, early-stage funds, and back partners investing smaller amounts in talented individuals to build a track record, giving them the opportunity to become investors. The initiative aims to reduce the significant gap in venture capital investment for underrepresented founders and investors due to industry biases, reliance on closed networks, and limited diversity among investors.
Made Smarter backs 400th technology project in the North West
Made Smarter has reached a significant landmark having funded its 400th technology adoption project in the North West. Over the last seven years, manufacturers have accessed £7.4m in matched funding from the government-backed, industry-led programme. This has unlocked £26m of investment in technologies ranging from sensors and robotics to 3D printing and artificial intelligence. These investments are forecast to generate more than 1,850 jobs and upskill 3,300 existing roles, while providing a £276m boost to the regional economy over the next three years. As well as grant funding, Made Smarter offers SME manufacturers a range of support, including digital transformation workshops, impartial technology advice, leadership and skills training, and a digital internship programme.