Business News Round Up (19/03/2024)
Business leaders in Scotland ‘quite confident’ about growth
A new KPMG survey identifies geopolitical risks and regulatory pressures as the biggest challenges to businesses. Business leaders in Scotland’s financial services sector have expressed their confidence about business growth for the second quarter of 2024, according to new research from KPMG UK. The quarterly survey of senior executives – 150+ UK adults who are director level and above in financial services companies – working in the sector found that business confidence remains high, building on an optimistic outlook for the first quarter of 2024. The survey found 43% of firms in Scotland are ‘quite confident’ of growth prospects during the next quarter (April to June), despite the same percentage saying they are ‘quite negative’ when it comes to the view of the UK economy in general.
https://www.digit.fyi/business-leaders-in-scotland-quite-confident-about-growth-2024/
UK economy continues to bounce back as most sectors return to growth, new survey shows
The number of sectors reporting output growth rose to the highest level in 10 months in February, a new Lloyds survey showed, as the UK economy’s recovery from recession broadened. 10 of the 14 surveys monitored by Lloyds reported an expansion in output, two more than in January and the most since April 2023. Software services, including data processing firms and software consulting, saw the fastest rate of expansion at 57.5, closely followed by financial services, at 57.4. The 50 mark separates growth from contraction. Data out last week showed that the UK returned to growth in January, with the economy growing 0.2%. This was largely due to a strong showing from the services sector, and in particular retailers. The Lloyds survey showed that output growth in the services sector was driven by growing demand, which climbed to its highest level since May 2023.
Four Scottish universities to benefit from £1 billion investment in new technologies
Four Scottish universities will benefit from a UK-wide £1 billion investment in new technologies including AI, green tech, quantum computing, semiconductors, and telecoms. The universities of Edinburgh, Glasgow, Strathclyde, and Heriot-Watt will all be supported through a UK Research and Innovation (UKRI) funding package unleashing new innovation. Under the plans, 65 Engineering and Physical Sciences Research Council (EPSRC) centres for doctoral training (CDTs) totalling more than £1 billion will be established across the UK. Heriot-Watt will ‘prepare research leaders for a just transition and explore how technologies such as carbon capture, green hydrogen and sustainable fuels’ can support industry and net zero. The University of Edinburgh will lead a Ministry of Defence-funded (MOD) centre, focusing on sensing, processing and AI for defence and security systems.
Tech verticals among UK’s best and worst sectors for growth last month
In the month of February, one tech-related sector was among those reporting the highest levels of output growth, while another faced some of the fastest rates of contraction, new data has shown. 10 of the 14 total sectors monitored by the Bank of Scotland’s UK Sector Tracker last month reported output growth. This was two more than in January (8), the most since April 2023 (10), and pointed to a broadening expansion of growth across the UK economy. In particular, software services—which includes software consulting and data processing firms—saw output grow at the sharpest rate of any monitored sector in February (57.5). The sector was closely followed by financial services (57.4), which includes banks, insurers, and investment services firms. However, another tech-related sector was among those who had the fastest rates of contraction: the technology equipment manufacturing sector (43.2).
https://www.digit.fyi/tech-verticals-among-uks-best-and-worst-sectors-for-growth-last-month/