Business News Round Up (22/10/2020)

Covid in Scotland: Rate of economic growth slowed in August

Economic growth in Scotland slowed in August compared to the previous month, according to the latest estimates. Scottish Government data shows Gross Domestic Product (GDP) rose by 2.6% in August, compared to 6.4% in July. It means GDP remained 9.4% below what it was in February, before the onset of the coronavirus pandemic. The August figures represent the fourth consecutive month of economic growth, but the increase was more uneven across industrial sectors than previously. Output in the services sector is estimated to have increased by 3.3% compared to July, output in the production sector fell by 0.3%, while construction sector output increased by 3.8%.

https://www.bbc.co.uk/news/uk-scotland-scotland-business-54630833

Covid: Greater Manchester given £60m support package

A £60 million support package for businesses affected by new coronavirus restrictions in Greater Manchester will be distributed across the region. Prime Minister Boris Johnson confirmed the government will be giving the extra funding as the region goes into the highest tier on Friday. The move follows a breakdown in talks with local leaders who requested £90 million but lowered their demand to £65 million. Greater Manchester is the first area to be forced into tier three, England’s highest level of alert, against the wishes of local leaders.

https://www.bbc.co.uk/news/uk-england-manchester-54628770

No recovery in sight for retail as sales continue to decline

September was the eighth month in a row of declining retail sales, with them falling by 6% overall. Sales recovery appears to have stabilised at this level, as overall sales performance has remained relatively unchanged over the last several months. The SRC-KPMG Scottish Retail Sales Monitor shows September’s trend was only slightly above the three-month average of minus 7.2%, and above the longer-term twelve-month average of minus 9.9%. The Scottish Retail Consortium said this clearly demonstrates the challenges facing Scottish retail, as it has not been able to improve its position in line with the positive wider UK trend.

https://scottishbusinessnews.net/no-recovery-in-sight-for-retail-as-sales-continue-to-decline/

The Hut Group creates 500 permanent jobs for North West ahead of Christmas after ‘rapid growth’ in demand for tech division

Manchester-headquartered ecommerce giant THG has outlined plans to create a further 500 jobs as it approaches its peak trading period. The recruitment drive – taking place between now and the end of the year – will cover a huge variety of roles and are in addition to the 2,000 already brought forward in the past 12 months. The majority of positions will be in THG Ingenuity, which has enjoyed a rapid growth in demand. THG said it is also working with local partners to launch an in-house Skills Academy, to retrain people who are out of work as a result of the ongoing pandemic and offer them sustainable employment.

https://www.business-live.co.uk/economic-development/hut-group-creates-500-permanent-19145959