Business News Round Up (14/05/2024)
North West economy continues to grow, finds NatWest business survey
NatWest, has revealed the North-west saw its economy continue to grow in April according to its monthly Regional PMI survey. NatWest’s headline Purchasing Managers Index (PMI) rose to 54.0 in March for the North-west region, up from 52.7 in April, representing stronger levels of growth in the region’s businesses – a figure above 50 indicates growth in the economy, while figures below show contraction in the economy. The bank’s survey found growth to be at its fastest rate for two years. Despite high growth, optimism for the future fell slight on March’s PMI survey findings, however, it remains high, bolstered by market confidence and increased export sales. Employment data declined slightly for the first time in four months, largely from job losses in manufacturing, but was broadly unchanged across the UK as a whole. Businesses also reported increases in inflows of new businesses, although backlogs of work continued to fall.
RBS: service sector boost Scottish private sector growth in April
Output for Scotland’s private sector grew marginally in April, along with the third consecutive monthly rise in new business, according to the Royal Bank of Scotland Business Activity Index. The seasonally adjusted index ticked up slightly from 53.6 in March to 53.8 in April, thereby signalling the sharpest rise in Scottish private sector output since April 2023. The service sector primarily drove this growth, compensating for a decline in manufacturing. This divergence between the two sectors was one of the largest recorded in over 26 years. Manufacturers experienced a drop in new orders, while services saw a rise in inflows of new work. Despite a third consecutive monthly rise in new business, Scotland lagged behind the UK-wide average. However, sentiment remained positive for future expansions, although confidence levels dipped to a five-month low, making Scotland the least optimistic among the 12 monitored regions.
Number of Scots in work falls by 38,000 over three months
The number of Scots in work has fallen by 38,000 over three months. Data from the Office for National Statistics showed in the period from January to March 2024 a total of 2,613,000 Scots were in employment. As well as being down 38,000 on the previous quarter, the total is 46,000 lower than it was in January to March 2023. According to the figures, Scotland’s employment rate is now 73.1% – lower than the rate for the UK as a whole, which is 74.5%. While the number of people in work has fallen, the figures also showed the number of Scots who are unemployed is higher than it was a year ago. There were 120,000 people in Scotland who were out of work in January to March this year – and while this was 5,000 lower than the previous quarter, it was 28,000 higher than in the first three months of 2023.
https://www.insider.co.uk/news/number-scots-work-falls-38000-32803279
Northern Powerhouse Fund attracts interest from more than 1,250 business
More than 1,250 businesses have expressed an interest in accessing a £660m investment fund that aims to help grow companies across the North. The Northern Powerhouse Investment Fund II (NPIF II) was launched in March with the new fund being open to companies in the North East, in contrast to its predecessor. Companies across the North East, North West and Yorkshire & Humber have asked for information about the fund, with roadshows held in places like Newcastle and Manchester. The British Business Bank fund aims to increase the supply and diversity of early-stage finance for small businesses looking to start up and scale up across the region. It is delivered by Praetura Ventures, FW Capital, River Capital, and GC Business Finance, with loans from £25,000 to £100,000, and debt finance options from £100,000 to £2m. Equity investments of up to £5m are also available.