Business News Round Up (19/04/2021)
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Boost in small business output suggests a swift return to growth, new research shows
Output at small UK businesses rose for the first time in six months during March, suggesting a swift return to growth as restrictions eased at the end of the first quarter. The latestRoyal Bank of Scotland UK Small Business Recovery PMI survey shows the strongest reading since November 2016 for firms with up to 49 employees. The headline All-Sector Small Business Activity Index rose from 46.7 in February to 55.8 in March, compared with a low of 40.5 at the start of national lockdown in January. Any figure above 50 indicates growth. The recovery was led by small firms in the construction sector, with output rising at the fastest pace since June 2001. Small service sector companies recorded the steepest rate of activity growth for three years in March. In the manufacturing sector, the latest data showed that production continued to pick up from the slump seen at the start of 2021.
https://www.insider.co.uk/news/boost-small-business-output-suggests-23937627
Lockdown hits commercial property investment but strong rebound predicted
INVESTMENT volumes in Scotland fell at the start of this year as pandemic lockdown restrictions hit commercial property deals, but a strong rebound is expected, according to new analysis. Colliers’ Scotland snapshot for the first quarter of 2021 reveals that investment volumes fell to £149 million, well down from £335m in the final three months of last year, and more than 70% below the five-year quarterly average of £536m. However, investment activity at the start of this year has been much stronger than during the first lockdown in quarter two of 2020, when only £50m was transacted. The largest deal of the quarter was Ares Management’s purchase of 301 student beds in Glasgow for £35m, which contributed to the student accommodation sector bucking the generally low level of activity, with investment volumes 20% above the five-year average.
One in three UK businesses worried about rising inflation
A growing number of British businesses have voiced concerns over rising inflation, with the balance of manufacturers expecting price increases climbs to a four-year high. New research by the British Chambers of Commerce (BCC) shows two in five businesses (38%) in the first quarter of 2021 expect to see price rises in the next three months. This is an increase from 25% in the previous quarter. In contrast, of the 5,800 respondents, only 5% of companies are anticipating a decrease. The figures demonstrate that nearly 30% businesses surveyed between 15 February to 11 March cited inflation as a cause of concern in the coming months, up from 25% in the prior three months. On a sectoral level, the balance of manufacturing firms expecting the price of their goods to increase in the next quarter rose sharply to +46%, from +27% in the previous quarter.
Businesses shun litigation to resolve commercial disputes during pandemic
Businesses across the UK have avoided using litigation to resolve commercial disputes during the Covid-19 pandemic and instead turned to negotiation and mediation, according to new research from EY. The research suggests that companies have heeded official guidance, released by the Cabinet Office in May 2020, which called on corporates to steer clear of litigation throughout the pandemic. Almost two-thirds (63%) of the more-than 100 FTSE350 and private companies surveyed by YouGov for EY said they had adopted a more conciliatory approach to business disputes since the pandemic began. EY’s figures also so that 81% of the companies surveyed said they had applied reliefs to contract terms since the pandemic’s onset, with 69% granting or receiving time extensions, 59% renegotiating other contract terms, and 25% granting or receiving payments for additional costs.