Business News Round Up (14/03/2022)

PMI: Scottish firms raise prices at record rate

Scottish firms passed on rising costs to customers at a record rate last month, according to a new survey. The Royal Bank of Scotland’s purchasing managers’ index (PMI) found businesses faced “unprecedented inflationary pressures” in February, with surging energy, fuel, material, and staff costs. However, Scotland still recorded the slowest rate of cost inflation across the 12 monitored UK areas. Meanwhile, business activity rose at its strongest pace for three months. Firms reported a strengthening of demand as Covid-19 restrictions were scaled back. Manufacturing production rebounded, while Scottish service providers registered a faster upturn in activity. The survey’s Business Activity Index – a measure of combined manufacturing and service sector output – rose to 55.5 in February, up from 53.7 in January. Business confidence at Scottish companies also continued to improve in February. The survey suggested optimism was driven by hopes of a strong rebound following the easing of restrictions.

https://www.bbc.co.uk/news/uk-scotland-scotland-business-60707129

‘Sharp and accelerated’ increase in North West business activity revealed by new figures

February saw a “sharp and accelerated” increase in business activity across the North West, the latest Regional PMI data from NatWest has revealed. The headline North West 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 – jumped from an 11-month low of 50.8 in January to 56.7, its highest since last November. Growth in the region was broad-based across both the manufacturing and service sector, although, overall, it was slower than the average across the UK as a whole, the bank added. Latest data showed a strong pick-up in demand for goods and services provided by firms in the North West in February. Inflows of new work rose sharply and at the quickest rate since July last year, as surveyed firms commented on growing client interest and successful sales drives. Although much faster than the historical series trend, the rate of new business growth in the North West was slower than the average across the UK as a whole in February.

https://www.business-live.co.uk/economic-development/sharp-accelerated-increase-north-west-23361940

Scottish fish and shellfish producers head to the US to boost exports

A group of Scottish fish and shellfish producers are heading to North America as part of plans to increase global trade for Scotland’s seafood industry. The Crab Company, Loch Duart, Organic Sea Harvest, Scottish Langoustines, Scottish Seas, Thistle Seafoods and Wester Ross Salmon will be exhibiting at Seafood Expo North America from 13 to 15 March, along with representatives from Seafood Scotland, to showcase the country’s products. They will be joined by chef John Watret, who will be doing live cooking demonstrations on 14 March, giving attendees from all over the world the opportunity to sample some of the exhibitors’ products. It is the first time that Seafood Expo North America has been able to take place since 2019. It is regarded as the premier seafood event in the Americas, attended by thousands of suppliers and buyers from around the world. For the Scottish contingent, getting back to the US is a step towards the recovery of the seafood sector, which represents Scotland’s (and the UK’s) largest food export and employs thousands of people all over the country.

https://www.insider.co.uk/news/scottish-fish-shellfish-producers-head-26445689

Gas and electricity networks top UK profit margin rankings

UK gas and electricity distribution companies have higher profit margins than any other sector, prompting calls for intervention at a time of soaring energy bills and frequent electricity blackouts in parts of the country. The regional infrastructure monopolies whose pylons and cables carry electricity from power stations to end users are achieving operating margins of 42.5 per cent, according to analysis by industry research provider IbisWorld, while gas distributors are earning 40.5 per cent. The margins, which come before tax and financing costs are deducted, outstrip those in more than 400 other sectors including private equity at 32.5 per cent and commercial real estate at 33.4 per cent, according to IbisWorld. High operating margins enabled the regional electricity networks to pay out £3.6bn in dividends to their owners between 2017 and 2021, with gas distribution networks distributing £2.4bn to theirs over the same period, according to a separate report by Common Wealth, a left-of-centre think-tank that has the Labour politician Ed Miliband on its board. It argues that UK households are paying the price for these pay-outs to owners — which include private equity, infrastructure funds and individuals such as Hong Kong’s billionaire Li family, which is weighing a £15bn sale of UK Power Networks, the country’s largest electricity network provider.

https://www.ft.com/content/aff47fb4-34ec-49c7-8aca-ebd462f4142b