Business News Round Up (14/03/2024)
UK economy shows green shoots of recovery in January
The UK economy has exhibited indications of a potential recovery, as January’s GDP growth of 0.2% reversed most of the decline experienced in the latter part of 2023. The rise, driven by a rebound in retail sales and robust construction activity, aligns with market expectations and could signify the start of a sustained economic upturn. While the manufacturing sector continues to struggle, largely due to a slowdown in North Sea oil investment, the dominant services industry recorded a 0.6% quarterly growth. The construction sector also saw a notable 1.1% increase in output over the three months to January. The EY ITEM Club anticipates further GDP growth in February, bolstered by fewer working days lost to industrial action and stronger business survey data. However, the lagged effects of past interest rate hikes and tighter fiscal policies are expected to constrain the pace of the recovery, resulting in a steady rebound.
North West retail store numbers decline – but hospitality sector shows resilience
More shops are opening than closing in the North West as administrations in the retail sector continue to take their toll. PwC has released the latest figures for store openings and closures – and it shows that on average four shops in the regions closed every day in 2023, while three new stores opened. But the finance giant, which carries out the research alongside the Local Data Company, says there are many positive signs for the high street – including a growth in hospitality venues. And it said the closure rate had remained steady since 2015. PwC said that in the North West in 2023, 1,618 stores closed in the region, while 1,040 opened. It said the closure rate was steady over time “with a net change of -11% in the years 2015 to 2023”. The research tracks over 200,000 retail outlets in over 3,500 locations
https://www.business-live.co.uk/retail-consumer/north-west-retail-store-numbers-28814261
Scottish recruitment activity continues to fall in February
Hiring activity across Scotland fell again in February, according to the latest Royal Bank of Scotland Report on Jobs survey, compiled by S&P Global. Recruiters reported falls in both permanent staff appointments and temporary billings. However, trends diverged as permanent placements fell at the quickest pace in 15 months, while the downturn in temp billings moderated since January. According to anecdotal evidence, economic uncertainty and subdued demand for staff had weighed on hiring decisions. “The latest recruitment survey continues to highlight reduced hiring activity across Scotland amid a backdrop of lingering economic uncertainty,” Sebastian Burnside, chief economist at Royal Bank of Scotland. Demand weakness was highlighted by marked falls in both permanent and temporary vacancies during February. However, pay pressures persisted amid competition for suitably skilled workers. February also showed a third consecutive monthly fall in permanent staff appointments across Scotland.
https://www.digit.fyi/scottish-recruitment-activity-continues-to-fall-in-february/
Scotland bucks national trend with increase in town centre visitor growth
Place Informatics, the leading provider of footfall and location visitor behaviour data monitoring in the UK, has published a national visitor data report to give an overview of how footfall across town centres in the UK compared in 2023 to 2022. The report showed an overall decline in UK footfall numbers last year, but Scotland bucked this trend with a 0.8% increase in visitors making it one of the highest-performing regions in the UK. The Annual Report explores the footfall dynamics across 12 regions in the UK for the year 2023, with a specific emphasis on analysing fluctuations in foot traffic on an annual, quarterly, and monthly basis. The overall report shows that footfall across town centres has dropped slightly (-0.22%) in 2023 but the month-by-month analysis shows a much more interesting overview of how last year compared to 2022.