Business News Round Up (12/06/2023)
Scottish private sector expansion slows amid fresh decline in manufacturing output, according to latest Royal Bank of Scotland Regional PMI
The Scottish private sector signalled a mild expansion in activity midway through the second quarter, according to the latest Royal Bank of Scotland PMI® data. However, the seasonally adjusted Business Activity Index slipped from April’s ten-month high of 54.3 to 50.7 in May – the weakest reading in the current four-month sequence of growth. Sector data highlighted that the rate of growth in services business activity moderated on the month, while a second successive month of reduction in manufacturing new orders resulted in a fresh reduction in goods output. Overall growth in new business remained modest as an accelerated expansion at service providers masked the downturn at manufacturers. Nonetheless, companies further expanded employment with both sub-sectors registering solid rates of job creation, albeit at slightly softer rates than seen in the previous survey period. For the fourth consecutive month, Scottish private sector firms registered an expansion in new business during May. The rate of growth was close to that seen in April. Where an increase was reported, respondents linked this to new clients wins and the commencement of new projects. However, sector data indicated a growing divergence as quicker growth in new business at service firms helped offset a faster downturn at goods producers. Moreover, the overall expansion across Scotland was weaker than seen across the UK as a whole.
Manchester tops multiple CBRE growth rankings
Manchester has taken the top spot as the UK’s foremost growth city across multiple sectors, according to research by CBRE.The firm’s Which City? Which Sector? report, which ranks real estate prospects over the next decade, ranked Manchester first in offices, urban logistics and self-storage, student accommodation, multifamily housing, and single family housing. The city was second only to Oxford and Cambridge in life sciences. CBRE examined the growth prospects for a range of real estate sectors across the 50 largest regional towns and cities in the UK. Findings were informed by economic drivers (including GDP, employment, and income growth), demographic trends and property market data such as supply pipeline, local universities, and housing affordability. John Ogden, managing director – North at CBRE, said: “When identifying key growth markets for office real estate, economic and demographic factors are fundamental. Manchester features top in CBRE’s rankings, partly because it is expected to benefit from the strongest GDP growth. The size of the talent pool is another key factor used when forecasting office demand and Manchester is ranked first for growth in working age population and office employment.”
https://www.insidermedia.com/news/north-west/manchester-tops-multiple-cbre-growth-rankings
Blueprint aims to make Scotland one of the ‘most innovative small nations’
A £100m fund is being pledged as part of a blueprint which aims to make Scotland “one of the most innovative small nations in the world”. Innovation Minister Richard Lochhead said the new strategy could help transform the country over the next decade and “drive a lasting improvement” in its economic performance. It sets the ambition for “Scotland to rank alongside Denmark, Norway and Finland in being recognised as one of the most innovative small countries in the world”. The strategy has been drawn up by the Scottish Government with input from business and universities – including a steering group chaired by Professor Sir Jim McDonald, vice chancellor of the University of Strathclyde. The plan seeks to encourage the development of European-style clusters of similar businesses in areas such as advanced manufacturing, health and life sciences, net zero, and data and digital technologies. It also pledges a new approach to investing in innovative companies by reviewing existing public sector funds, and to improve support for Scotland’s “world class universities” so they can be better at turning research into successful products and businesses. The document says ministers will “work closely with universities to design and develop a £100m Scottish Innovation Fund to invest in early stage start-ups focused on deep science and other emerging technology areas”.
https://www.insider.co.uk/news/blueprint-aims-make-scotland-one-30210796
NatWest issues warning despite business activity continuing to grow
NatWest has issued a warning about the future economic development of the North West despite a fourth consecutive monthly rise in business activity across the region. Firms in the North West saw business activity rise for a fourth straight month in May, but the rate of growth eased slightly as inflows of new work edged lower, the latest UK Regional PMI survey from the bank showed. On the price front, firms raised charges for goods and services at the slowest rate since February 2021, though the pace of inflation was still historically high amid the pass-through of growing salary costs. The headline North West PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – came in at 52.3 in May, registering above the neutral 50.0 that separates growth from contraction for the fourth month running. That said, the index was down from a 12-month high of 53.5 in April and below the UK average (54.0)