Business News Round Up (18/03/2024)
Recession concerns ease as economic growth diversifies across UK sectors
In a positive turn of events, economic growth has become more widespread across the UK’s private sector, reaching a ten-month high in February. According to Lloyds Bank’s monthly economy tracker, ten out of 14 sectors experienced an increase in output last month, marking the most extensive growth since April 2023. Notably, software and financial services led the pack, benefiting from heightened demand and expanded output. This surge underscores the resilience of the UK’s services sector, a significant driver of the economy, which has been buoying growth since 2022. The data also aligns with mounting evidence suggesting that the UK economy has rebounded from the mild recession observed towards the end of the previous year. January’s growth figures indicated a 0.2 per cent monthly expansion, while private sector surveys reflect growing business confidence and a moderation of inflationary pressures.
Tech companies incorporated in Scotland rose by 21% last year
The number of technology companies incorporated in Scotland rose by 21% in 2023, new analysis from RSM UK — the audit, tax, and consulting firm — has discovered. The firm found that a total of 1,553 Scottish tech companies were incorporated last year, compared to 1,280 in 2022 — marking an increase of 273 companies, or 21%. Across the UK as a whole, last year saw 51,017 new tech firms incorporated, compared to 2022’s figure of 41,972, representing a change of 9,045 companies, or 22%. Key sub-sectors that saw significant growth included software development companies, data businesses, and IT consultancies. However, the only UK region that didn’t see an upward, positive change was Wales, which had 1,257 tech company incorporations in 2022 compared to 2023’s 1,150 — a decrease of 107 companies, or -9%.
https://www.digit.fyi/tech-companies-incorporated-in-scotland-rose-by-21-last-year/
Manufacturer’s confidence remains robust despite weak economy – Make UK/BDO survey
Confidence levels among manufacturers remain robust despite the weak outlook for the UK economy overall, according to the Q1 Manufacturing Outlook survey published today by Make UK and BDO. The survey shows that, while the general economic picture is flat, there are stark sectoral and regional imbalances, with electronics, aerospace and food and drink powering ahead, whilst the South East and Wales are performing substantially better than other regions and devolved nations. According to Make UK, these imbalances for both sectors and regions are now becoming permanent, with the strong performance of manufacturing in the South East providing yet further evidence that levelling up is failing to address regional economic imbalances. Make UK used the anaemic prospects for the sector to re-iterate its call for a long-term industrial strategy and urged all political parties to focus on boosting investment and economic growth as an urgent national priority.
Scotland’s attractions enjoy surge in visitors
Scotland’s tourist attractions enjoyed a bumper 2023, boosted by the reopening of the gallery of Scottish art and popular exhibitions. Figures from the Association of Leading Visitor Attractions (Alva) show that visits increased by 21% over the previous year, ahead of the UK average of 19%. The surge, however, was dampened by one tourism group challenging the level of investment in Britain compared to competing countries. According to Avla, Scotland’s top ten attractions alone drew 11.9 million visitors against 9.8 million in 2022. The country also had six of the 30 most-visited attractions in the UK, compared with five for the rest of the UK outside London. Observers said the figures were boosted by the reopening of the Scottish art rooms at the National Galleries together with Banky’s Cut and Run show at Glasgow’s Gallery of Modern Art which enjoyed a 60% rise in visitors to 511,000.
https://dailybusinessgroup.co.uk/2024/03/scotlands-attractions-enjoy-surge-in-visitors/