Business News Round Up (18/06/2024)
Business investment in the UK the lowest of any G7 countries, analysis finds
The flow of new investment into the UK has been the lowest of any of the world’s most advanced economies for three years running, new analysis shows, as leading political parties sharpen their pledges to boost the economy. Business investment by private companies was lower in the UK than any other G7 country in 2022, according to research by the Institute for Public Policy Research (IPPR). The G7 is a group of seven major economies, also incorporating the US, Canada, France, Germany, Italy and Japan. The analysis, which used the latest datasets provided by the Organisation for Economic Co-operation and Development (OECD), showed that the UK was at the bottom of the pack for the third year in a row. It suggests that the country is not attracting as much business investment, as a percentage of gross domestic product (GDP), as its international peers.
Services exports grow strongly but trade in goods is hit by Brexit: LSE experts
UK trade has been negatively affected by Brexit, with small firms particularly hard hit – and the full effect is still to come, a new analysis concludes. Researchers at the Centre for Economic Performance (CEP) say that the introduction of the post-Brexit Trade and Cooperation Agreement (TCA) in 2021 did not affect large firms’ exports but has led to sharp falls in goods exports to the EU by smaller firms. The CEP election analysis Brexit and UK trade shows that the total value of UK exports has been more resilient to the effects of Brexit than economists had expected, this is because the impacts of the TCA have been concentrated on small firms. The briefing shows that total UK exports have grown at a similar rate to exports of other European economies because strong growth in UK services exports offset a relative decline in UK goods exports.
Number of growing UK sectors ‘highest in 15 months’
More parts of the UK economy grew in May than at any time in the last 15 months, according to the latest Bank of Scotland UK Sector Tracker. While the overall rate of output growth across the economy slowed marginally in May – 53 vs. 54.1 in April – 11 out of the 14 UK sectors monitored reported output growth – up from eight in April and the most since February 2023. Property saw output rise at the fastest pace – 58.9 in May vs. 51.6 in April – followed by chemicals manufacturing – 58.7 vs. 48.6. A reading on the tracker above 50 indicates expansion, while a reading below that indicates contraction. Broader growth was driven by more sectors experiencing rising demand. In May, nine sectors saw demand, as measured by new orders, increase. This was two more than in April (seven) and the highest number since February 2023.
https://www.insider.co.uk/news/number-growing-uk-sectors-highest-33047915
‘Skyscanner for Construction’ bags £1m seed funding with AI platform
BuildBuddy, a Scottish startup founded by James Menzies and Alix Baldwin, has won £1m from investors for its innovative platform that’s been dubbed the ‘Skyscanner for construction materials.’ The tech startup uses AI to find the best construction materials at the best price for SME builders across the UK. The company aims to revolutionise the way construction materials are purchased for small businesses with the platform, which works similarity to Scottish unicorn Skyscanner. BuildBuddy scours the web for the best deals and suitable delivery terms, which the company says can help save builders as much as 14% on a typical order. East Lothian-native Menzies first came up with the idea after his experiences running his own construction company, Zebra Property Group, with offices in Edinburgh and London. Running this business, Menzies came across myriad frustrations with the cost of building materials and sought an easier way to sort through offers.
https://www.digit.fyi/skyscanner-for-construction-bags-1m-seed-funding-with-ai-platform/