Business News Round Up (12/03/2021)
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Exports to EU plunge 41% in January as Brexit transition period ends
Exports of UK goods to the European Union dropped by more than two-fifths in January, as the Brexit transition period came to an end. New figures from the Office for National Statistics (ONS) show that overall exports from the UK fell by £5.6bn – 19.3%. It was driven by a 40.7% fall in exports of goods to the EU. Imports also fell, by £8.9bn overall (21.6%), while imports from the EU dropped £6.6bn (28%), the figures show. The falls in imports and exports are the largest since records began in 1997, the ONS said, as a £200m increase in non-EU exports failed to make up for the decline within the bloc. The end of the transition period coincided with the spread of a new strain of Covid-19 in the UK, causing lorry drivers to need tests to cross the border at the English Channel. Another national lockdown was also imposed at the beginning of the month. Since then, other measures have shown that trade levels have in part recovered.
https://www.insider.co.uk/news/exports-eu-plunge-41-january-23692865
‘A sobering first quarter’ ahead: UK GDP falls 2.9% in January amid third national lockdown
The UK economy shrank by 2.9% in January this year after it was hit with a third national lockdown, according to data from the Office for National Statistics (ONS). The fall, which comes one month after a 1.2% uptick in economic growth in December, was 9% below levels last seen before the first lockdown in February last year, and 4% below the initial recovery peak in October 2020.The services sector dealt the biggest blow to UK GDP having fallen by 3.5% as a direct result of the lockdown. Growth for the sector was down 10.2% compared to February last year and 4.9% below levels seen in October.Meanwhile, the production sector fell for the first time in eight months at 1.5%. This was 5% below its level in February 2020. In contrast, construction grew by 0.9% in January, having fallen by 2.9% in December last year. It was one of three out of 20 economic subsectors used by the ONS that experienced positive growth in January, alongside health services and IT.
UK small business owners have used £7,000 of savings to keep business alive
Small business owners have been tested to the limit over the past year, thanks to the pandemic putting intense pressure on cashflow and jobs. New research from reveals the range of personal sacrifices small business owners have taken just to keep their businesses afloat and employees in roles, including digging deep into their own savings. With over half of the small businesses surveyed unable to trade at some point in the past year, small business owners spent an average of £7,000 out of their personal savings to keep their staff on payroll and their business going. The new study highlights that a third of small business owners gave up their own salaries to keep employees on during the pandemic, while nearly half gave up holidays, 41% gave up bonuses, and 30% gave up their dividends.
Manchester office market will ‘prosper not die’ despite switch to work from home
Manchester’s office market will “continue to prosper” rather than stagnate despite the Covid pandemic, a leading figure in the industry has predicted. Will Lewis from OBI, the consultancy responsible for transacting 42% of all office space in the city, says his firm is confident this sector will return to growth despite the Covid-induced switch to working from home. Mr Lewis said that because of factors including Manchester Council’s long-term economic strategy, the city now has a growing skills base driven by graduate talent, significant rises in business start-ups, and major infrastructure investments planned. Other aspects including long-term plans to improve connectivity, place-based strategies and a push for high-quality office developments and refurbishments, stand the city in good stead.
https://www.business-live.co.uk/commercial-property/manchester-office-market-prosper-not-20078092