Business News Round Up (14/006/2021)
UK manufacturing sector doubles growth forecast amid economic recovery
The UK’s manufacturing growth forecast for 2021 has been upgraded from 3.9% to 7.8% as Britain continues to recover from the onslaught of the coronavirus pandemic. According to a major survey published today by Make UK and business advisory firm BDO, the sector is set to recover a significant amount of last year’s 10% decline and outpace the growth of the economy overall (7.5%). This growth is based on a surge in both domestic and overseas orders which has increased the hiring of workers in the industry, which climbed from -6% to 20%. Make UK said that assuming the coronavirus vaccine rollout programme continues at pace and its effectiveness is strong, manufacturing output will return to pre-pandemic levels by the end of 2022. This is earlier than previous forecasts had suggested.
Scottish private sector output increases as lockdown restrictions ease
The easing of lockdown restrictions led to an increase in output from the Scottish private sector during May, according to the latest figures from Royal Bank of Scotland. Its Business Activity Index recorded a measure for combined manufacturing and service sector output at 61.5 in May, up from 55.4 in April. The data is compiled from responses to questionnaires sent to companies that participate in IHS Markit’s monthly PMI surveys. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The rate of growth recorded last month was the steepest since the survey began in January 1998. Respondents mainly linked higher activity to the loosening of lockdown restrictions, with new business also increasing at an “unprecedented pace”. Companies increased employment to deal with the higher workloads, to an extent previously unseen in the survey’s history. However, inflationary pressures strengthened, with both input costs and output prices rising at sharper rates. The rate of charge inflation in Scotland was softer than the UK average.
https://www.insider.co.uk/news/scottish-private-sector-output-increases-24298852
North West sees strongest business activity growth in over 24 years as Covid restrictions ease
The North West saw its strongest growth in business activity in over 24 years last month thanks to Covid restrictions being eased and a pick up in market demand. According to the latest NatWest PMI report, there was a record build-up of backlogs spurring accelerated job creation, with strong growth recorded across both manufacturing and services. The PMI figures track the monthly change in the output of goods and services across the private sector. Any figure over 50 shows growth, with higher figures signalling faster expansion. That figure for the North West rose from 59.7 in April to an all-time high of 66.4 in May, also the highest reading among the 12 UK regions monitored by the survey.
https://www.business-live.co.uk/partners/north-west-sees-strongest-growth-20790750
Global Centre of Excellence gets Scottish base after US investment
The centre, set to be built in West Lothian, will help cement Scotland’s “world-class reputation” in life sciences. Scotland is to strengthen its reputation in life sciences after the announcement of a global centre of excellence in West Lothian. US clinical research company Q2 Solutions has announced a multi-million-pound inward investment at its Livingston campus, creating 156 skilled jobs over the next three years. Supported by a £3.8-million Scottish Enterprise grant, Q2 will establish a centre of excellence in flow cytometry and genomics testing and analysis, enabling it to offer an increased range of services. The multi-million-pound research and development project will help “anchor” the firm’s operations in Scotland and sits alongside an ongoing £17-million infrastructure expansion project at the campus, where the company already employs more than 950 people.