Business News Round Up (19/11/2020)
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Pace of UK economic recovery slows amid further lockdown measures
The pace of the UK’s recovery from the pandemic fell behind the global benchmark in October for the first time since June. The slowing came as consumer facing industries and their suppliers grappled with new restrictions and slowing demand. The Bank of Scotland’s latest Recovery Tracker showed that the UK posted a reading of 52.1, down from 56.5 in September, mirroring the economic slowdown seen across the rest of Europe amid a resurgence of the virus. Six of the 14 UK sectors monitored by the tracker saw output rise faster than the global index during October, however, this was five fewer than in September. Beverages and food (43.5), household goods (45), technology equipment (52.7), chemicals (51.9), real estate (52.4) and banks (55.2) all dropped below the benchmark in October, while tourism and recreation (25.5) and transportation (43.6) both fell further behind.
https://www.insider.co.uk/news/pace-uk-economic-recovery-slows-23032172
UK’s attractiveness as inward investment destination remains resilient, EY survey shows
The UK’s attractiveness as an inward investment destination remains resilient and overseas companies still plan to invest in the UK in the next 12 months although the number has fallen to 25% from a 10-year high of 31% in April, a survey from EY shows. EY says its latest UK Attractiveness Survey provides more evidence of the economic impact of Covid-19, which has created uncertainty and prompted a rethink of investor priorities. Tracking the UK’s appeal as a destination for foreign direct investment (FDI), the survey of 220 non-UK investment decision-makers also found 43% of respondents will continue with UK investments they planned before the pandemic, down from 72% in April.
Covid: Scottish retailers ‘in daily fight for survival’
Scottish retailers are facing a daily fight for survival as tighter Covid restrictions and economic uncertainty exert a “vice-like grip”, according to an industry body. The Scottish Retail Consortium (SRC) warning came as new figures indicated a further steep decline in sales. Last month, SRC found total sales fell year-on-year by 8.5%, dragged down by a 19.3% slump in non-food sales. The food category was up by 4.4% in October. It was the weakest performance since the lockdown ended in June. The retail consortium’s report for October suggested convenience stores benefited from tighter restrictions on eating out, while sales of electronics, household goods and home office products remained high as many office workers opted to stay home.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-54967350
Greater Manchester leaders unveil vision for post-Covid economy
The Greater Manchester Local Enterprise Partnership (LEP) has today set out a bold new vision for a greener and fairer Greater Manchester. The vision – Building a Greater Manchester, Making a Greater Britain – provides a blueprint for remodelling the city-region’s economy. It includes a range of long-term initiatives to help businesses innovate more effectively and become more productive, creating a greener and more resilient Greater Manchester. It builds on the Local Industrial Strategy while recognising the shift in attitudes among people, businesses and investors caused by the coronavirus pandemic. Central to the vision is Innovation GM, a new platform which will bring together Greater Manchester’s public and private sectors, educational institutions, and specialist facilities to attract research and development funding and drive economic growth. This will be particularly targeted at frontier sectors identified by the Local Industrial Strategy: health, digital, clean technologies and advanced manufacturing and materials.