Business News Round Up (16/02/2024)
Number of UK sectors reporting growth hits eight-month high
The number of UK sectors with growing output hit an eight-month high in January, according to the latest Bank of Scotland UK Sector Tracker. In January, eight of the 14 sectors monitored reported output growth. This was two more than in December 2023, and a stronger start to the year than last January. Transportation – which includes hauliers, airlines, and rail operators – saw output grow at the fastest rate of any sector monitored (60.4 in January vs 49.1 in December). This was driven by the sharpest rise in new business in the sector for more than two years (58.5 vs. 48.4), reflecting demand for logistics services, and rail and air travel, amid a wider uptick in economic activity. Professional and commercial services, which includes legal and recruitment firms, also saw output expand (54.1 vs. 48.1), on the back of a renewed rise in demand (50.4 vs. 47.4).
https://www.insider.co.uk/news/number-uk-sectors-reporting-growth-32139093
Manchester excels as second only to London for Foreign Direct Investment
Manchester has been ranked the largest UK city, outside London, for Foreign Direct Investment (FDI). Its status is confirmed in the latest FDI Intelligence European Cities and Regions of the Future 2024 report. The rankings benchmark European cities and regions according to their economic, financial, and business strengths. Following an assessment of 509 locations – 330 cities, 141 regions and 38 LEPs – those with the most promising prospects for inward investment, economic development, and business expansion, are ranked in the Top 10 in categories. Manchester represents the largest city region economy outside London, with a gross value added (GVA) of £78.7bn. This strength has enabled it to establish an outstanding reputation as a world class offer for international investors across its key sectors of Creative Digital and Tech, Advanced Manufacturing, Financial Professional and Business Services and Life Sciences.
Retail rebound raises hopes of short recession
Retail sales rebounded strongly in January but only added further confusion to consumer spending patterns following a record fall in December. Sales across Britain rose 3.4% last month, registering the largest monthly rise in almost three years and recovering from the 3.3% dip in the final weeks of last year. Non-food store sales volumes rose by 3.0% while food rose by 3.4%. Clothing was the only category to report declining sales, down 1.4%, according to data from the Office for National Statistics. The figures defied worries that sprang from yesterday’s GDP figures confirming the economy had slipped into recession at the end of 2023. They will be seen as endorsing the view that the recession will be short-lived, and that the recovery may be under way. Among retailers trading higher on the stock market this morning were JD Sports, up 1.6% and Marks & Spencer which rose 1.2%.
https://dailybusinessgroup.co.uk/2024/02/retail-rebound-raises-hopes-of-short-recession/
Colleges spearhead £1.2m project to drive innovation in business across Glasgow and the west of Scotland
More than £1.2m will be invested in creating six new innovation hubs at colleges across Glasgow and the west of Scotland to help encourage innovation in local businesses. The 12-month College Local Innovation Centres (CLIC) pilot project, funded by the Innovate UK Further Education Innovation Fund, will help businesses across the Glasgow City Region gain access to comprehensive support and guidance on embedding and embracing innovation within their organisations. The hubs will support businesses in a number of sectors including health, sustainability, and digital. Support will range from advisory services to hands-on assistance in adopting cutting-edge technologies, processes, and business models. It’s hoped more than 200 businesses across Glasgow, Inverclyde, North and South Lanarkshire, Renfrewshire and East Renfrewshire, and West Dunbartonshire will benefit from the project, which starts at the end of March 2024.