Business News Round Up (23/10/20)
UK’s economic recovery fades in October as pandemic flares up – PMIs
Britain’s economic recovery has lost more momentum this month as a resurgence of the coronavirus pandemic hit businesses in the hospitality and transport sectors, according to a new survey. An early “flash” reading of the IHS Markit/CIPS UK Composite Purchasing Managers’ Index (PMI), a gauge of private sector growth, fell to a four-month low of 52.9 in October from 56.5 in September. A Reuters poll of economists pointed to a smaller decline to 53.9. The survey added to signs that the economic recovery is fading as COVID-19 cases surge, prompting some parts of the country to reimpose health restrictions that require pubs and restaurants to close early and limit social gatherings.
North West could lose six years of economic growth due to pandemic, research claims
Research by Iwoca, one of Europe’s largest small business lenders, has found that regions in the North of England could lose up to 6 years’ worth of growth due to the financial hit created by the pandemic. The region has been forecast to lose 11.2% of GVA in 2020, and analysis of the North West’s GDP statistics from previous years suggests that this fall would erase the region’s economic growth made between 2012 and 2018. Businesses in the North could also be more vulnerable to the adverse effects of the Covid-19 crisis. The ONS identified the sectors of ‘Accommodation & food services’ and ‘Arts, entertainment, recreation & other services’ as being the two worst affected by the pandemic between January and July, and these are sectors likely to be greatly impacted by further local lockdowns.
University and product development agency combine to build the scaleups of the future
A Scottish university and a product development agency have launched a strategic partnership which aims to build the multinational scaleups of the future. Heriot-Watt University is aiming to build multinational scale-ups via a strategic partnership with product development agency Filament PD. The university’s Global Research Innovation and Discovery (GRID) facility will combine its entrepreneurial talent pool with Filament PD’s commercial and industry experience to help scale businesses capable of competing at a global level. The partnership expects to drive investment and improve route-to-market for new technologies. Filament PD is renowned for supporting some of Scotland’s most innovative start-ups and SMEs. It has brought more than 100 products to market in the last five years by harnessing innovation and transforming research into successful products.
https://www.insider.co.uk/news/university-product-development-agency-combine-22892544
UK-Japan deal to boost North West companies
Hundreds of companies across the North West are set to benefit from the signing of a landmark free trade agreement between the UK and Japan. The UK-Japan Comprehensive Economic Partnership Agreement could boost trade between the countries by £15.7 billion and drive economic growth. It could also benefit more than 700 businesses in the North West that exported to Japan last year, as well as helping more to do so. Head of the North West at the Department for International Trade Paul Stowers said: “The trading relationship between the North West and Japan is already strong and this new partnership between our two countries is reason for optimism about the years ahead.”
https://www.insidermedia.com/news/north-west/uk-japan-deal-to-boost-nw-companies