Business News Round Up (26/01/2024)
UK consumer confidence hits two-year high in January
UK consumer confidence reached a two-year high in January, according to research company GfK, in the latest positive sign for the economy. The consumer confidence index, which measures people’s views of their finances as well as their view on broader economic prospects, rose three points month on month to minus 19, the highest level since January 2022. This was the third consecutive month-on-month increase and followed the release of January’s purchasing manager index last week, which showed economic activity rising at the fastest pace in seven months. Economists said the findings suggested that January’s cut in national insurance, falling mortgage rates and rising real wages were helping consumer sentiment despite the cost of living crisis still hurting household budgets. The rise in consumer confidence in the UK compares with a larger than expected drop in the eurozone, according to data released earlier in the week.
https://www.ft.com/content/54d6eb7a-e026-4737-9165-49367f84370f
Survey finds private sector investment fell 10% in 2023
UK transactions involving mid-market private equity investors in the North West of England dropped in 2023 amid challenging macroeconomic conditions, new analysis from KPMG UK has revealed. The firm’s latest Mid-Market Private Equity study, which tracks deal flow and sentiment, shows that 69 deals worth £5.1bn were completed in the North West in 2023. This reflected a drop in volume of almost 15%, but also a slight uptick in total value by 9.2%, when compared to 2022. In terms of the proportion of deals completed in the region, the North West accounted for 10.2% of all deals taking place in 2023, a slight reduction from 10.8% in 2022. Despite this the region still attracted the largest number of investments outside of the London region which accounted for 47% of mid-market deals last year. On a national level, mid-market private equity investment activity declined by 10% in 2023.
Over £2m awarded to 11 UK businesses as OWGP launches latest funding round
The Offshore Wind Growth Partnership (OWGP) has released its latest Development Grant funding call, with £2m available for UK businesses looking to accelerate their growth in the offshore wind supply chain. Funding is available for projects that target at least one of the high-value focus areas identified in the recent Supply Chain Capability Analysis report, commissioned by the Offshore Wind Industry Council (OWIC) and OWGP. Proposals should align with one of the nine supply chain categories that represent high value opportunities for the UK, including cables, substations and electrical design, steel fabrication, floating wind, development services, offshore services, vessels, blades and rotor assembly and Wind Turbine Generator components. Grants of up to £500k are available to cover up to 50 per cent of project costs and will be awarded on a competitive basis.
Robust Manchester office take-up in 2023 – MOAF
Almost 950,000 sq ft of office space was let across 221 transactions in Manchester city centre last year, according to new research. Manchester Office Agents Forum (MOAF) found the ten largest transactions completed in 2023 totalled 254,566 sq ft compared to 408,921 sq ft in 2022. The organisation is predicting strong take-up in 2024, with a number of high-profile, large transactions due to complete in the first half of the year. Last year saw a new record rent of £43.00 per sq ft achieved when Pinsent Mason acquired space at 1 St Michaels, which is due to complete in August 2024. Hill Dickinson also agreed to take 18,192 sq ft in the same development. Other notable transactions concluded in 2023, including Arden University acquiring 42,944 sq ft at 2 Hardman Street and Matillion acquiring 27,056 sq ft at 2 New Bailey Square.
https://www.insidermedia.com/news/north-west/robust-manchester-office-take-up-in-2023-moaf