Business News Round Up (14/08/2023)
UK manufacturing production uptick helps bolster Q2 GDP growth
The UK manufacturing sector was the largest contributor to production output in June 2023, which in turn was the largest contributor to GDP growth, according to the latest ONS figures. The UK economy grew by a modest 0.5 per cent in June 2023, following a fall of 0.1 per cent in May. The largest contributor to GDP growth was production output, which grew by 1.8 per cent in June, having previously fallen by 0.6 per cent in May. June’s production output growth was the strongest seen since August 2020, when it grew 1.9 per cent. The largest contributor to the production output growth witnessed was manufacturing output, which grew 2.4 per cent in June, the strongest growth since November 2020, when it grew 2.5 per cent. In fact, the manufacturing sector recorded growth in 11 of its 13 subsectors, with basic pharmaceutical products and pharmaceutical preparations the largest contributors to manufacturing growth, growing 7.9 per cent in June. Transport equipment also saw notable manufacturing growth of 4.8 per cent in June, with the manufacture of motor vehicles, trailers, and semi-trailers the largest contributor to this division, growing 8.5 per cent in June. Overall, production output grew 0.7 per cent in Quarter 2 2023, compared with Quarter 1, with growth of 1.6 per cent in manufacturing being the largest positive contributor to growth in production output during the period. Meanwhile, the total value of UK goods exports increased by £0.6bn in June 2023, representing 1.8 per cent growth, attributed mainly to a rise in exports to non-EU countries. Exports to the EU remained stable. The trade in goods deficit narrowed by £4.6bn to £51.3bn in Quarter 2 2023.
Scottish business activity growth softens as manufacturing output contracts sharply, according to latest Royal Bank PM
According to the latest Royal Bank of Scotland PMI® survey, Scottish private sector companies expanded their output for the sixth successive month in July. That said, the rate of increase slowed since June as the seasonally adjusted Composite Output Index fell to 51.1 from 53.2. Trends diverged on a sector level with service providers continuing to report modest, albeit slightly softer growth in business activity. Goods producers, however, signalled a renewed and sharp contraction in output amid reports of demand shortfalls. New business received across Scottish private sector firms remained broadly unchanged at the start of the third quarter. Albeit only fractionally, the seasonally adjusted index dipped below the crucial 50.0 mark for the first time in six months, led by a deepening contraction at manufacturers amid reports of reduced demand from clients and market inactivity. Meanwhile, service providers signalled a slowdown in new business growth. July saw the degree of sentiment towards activity in 12 months’ time weaken to its lowest since January and move further below the long-run average. Companies recorded a drop in confidence as reports of a high interest rate environment, cooling demand and the cost of living weighed on the outlook. Moreover, Scotland was the least optimistic of the 12 monitored UK areas. Nonetheless, hopes of improved market conditions and the launch of new products allowed some firms to maintain a positive outlook.
Scottish salmon exports leap 9%
Scottish salmon export sales jumped by 9% in the first half of 2023, with major growth in the Asian and American markets. New figures show that salmon from Scotland – which is the UK’s largest food export – recorded a value of £306m between January and June. The largest increases by value were to the US, China, Poland, and Taiwan, while there was also huge percentage growth in the Netherlands, Singapore, Japanese and Spanish markets. France remains by far the top international destination for Scottish salmon, and although sales to the country dipped 5% in the first half of the year, this was more than offset by wider global demand. Within the EU, the new figures for countries like Poland and the Netherlands – now the fourth and sixth biggest global markets – reflect a growth in other EU hub and redistribution markets. Overall, non-EU exports rose by 19% in the first half of 2023 to £132m, with EU export sales up by 3% to £173m. Salmon Scotland analysis of HMRC figures, comparing values in the first half of 2023 with the first half of 2022, show exports to: The US up 10%; to £77m; China up 57% to £12m; Poland up 48% to £17m; Taiwan up 174% to £9m; Netherlands up 114% to £9m.
https://www.insider.co.uk/news/scottish-salmon-export-sales-leap-30681241
Rural renaissance: the growth of microbusinesses fuelled by women’s innovation
Almost 100,000 rural microbusinesses have been started in the past 12 months, with female entrepreneurs at the heart of the booming countryside economy.Data from Venture Forward, an annual international research initiative by GoDaddy that analyses data from more than British 2.3 million microbusinesses, shows that 25.9% of Britain’s microbusinesses are based rurally, up from 24.1% in 2022. This equates to 94,464 new start-ups over the past 12 months, suggesting that Britain’s countryside has become a hotbed for entrepreneurial talent. GoDaddy’s figures also show that this trend is being driven predominantly by women. In 2022, 33.1% of rural entrepreneurs were female, which has jumped to 43.6% in 2023. Comparatively, 35% of urban microbusiness owners are women. With three-quarters (75%) of these businesses also employing at least one other person, they potentially can support almost 2.5 million jobs. Venture Forward data shows that rural entrepreneurs are also older than their city-based counterparts. A quarter (26%) of urban microbusiness owners are over 50, which jumps to two-fifths (39%) for those running rural businesses. Retail and consumer businesses are at the forefront of the countryside economy, accounting for 14% of ventures. Entertainment and the arts is another major sector, accounting for 10%, with IT and technology (8%), professional and business services (7%) and education (6%) among other popular industries. Reducing barriers to entry, facilitated by the increase in online tools and services, could also be playing a major role in the thriving countryside economy. Two in five (43%) of rural businesses were started for less than £1,000, with a further fifth (21%) of entrepreneurs requiring less than £5,000 of capital to start trading.