Business News Round Up (12/10/2020)
Scotland’s growth weakest of any part of the UK
Business growth in Scotland is the weakest of any part of the UK, according to a key economic indicator. Research from NatWest RBS reveals that business activity in September grew in every part of the UK, but those areas run by devolved governments – Scotland, Northern Ireland, and Wales – slumped to the bottom of the rankings. The purchasing managers business activity index tracks the monthly change in the output of goods and services across the private sector. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.
https://dailybusinessgroup.co.uk/2020/10/scotlands-growth-weakest-of-any-part-of-the-uk/
‘Strong rise’ in North West business activity – but at lower rate than UK as a whole
The latest UK regional PMI data from NatWest showed a further strong rise in business activity across the North West in September, as the region’s private sector continued to recover from the shock to demand and the widespread lockdown caused by the coronavirus pandemic earlier in the year. Under the PMI Index, the North West Business Activity Index, which measures the month-on-month change in the combined output of the region’s manufacturing and service sectors, fell to 56.8 in September – down from 57.2 in August. North West firms remained optimistic about the outlook for business activity over the next year, with hopes for the effects of Covid-19 to subside, however concerns about rising unemployment and Brexit uncertainty meat expectations eased slightly from August’s three-and-a-half year high to the lowest since June.
https://www.business-live.co.uk/partners/strong-rise-north-west-business-19077861
Scottish aviation sector worth £4 billion a year, report reveals
A new report reveals the under-threat aviation industry is worth £4 billion a year to Scotland’s economy. It also highlights the importance of the sector to the business community. The report comes as the industry has been shocked by the coronavirus pandemic, putting thousands of jobs at risk. The report says that before the outbreak of the pandemic, the total cost of domestic aviation in the UK was about £15 billion. Proportionate to passenger numbers, the impact of domestic aviation on GDP was £4 billion in Scotland and London, compared to £2 billion in Northern Ireland; and £1 billion in the North West of England, £700 million in the South West; £500 million in the Midlands and £300 million in the North East.
Services sector recovery slows as government restrictions take their toll
UK business recovery is losing momentum, with output growth in the services sector significantly slowing in September, according to the latest Business Trends report from accountancy and business advisory firm BDO LLP. While September witnessed a fifth consecutive month of output growth since levels plummeted to record lows in April, it marked a marginal rise of just 1.01 points last month. This compares to gains of 6.7 points recorded in July and 11.16 points in June. BDO’s Output Index now stands at 77.95, well below the long-term average of 100. This decline in momentum was driven by the services sector, as various government measures designed to prevent the spread of coronavirus, such as the ‘rule of six’ and the 10pm curfew, hit businesses. Many firms also reined in plans for returning to the office in a further blow to industry.