Business News Round Up (27/07/2021)
Scottish firms report increase in business activity levels
Business activity has risen in Scotland as the wider economy continues to reopen, according to a major survey which confirms business sentiment continued to improve through the second quarter of 2021. The Addleshaw Goddard Scottish Business Monitor report – published in partnership with the University of Strathclyde’s Fraser of Allander Institute – indicates that businesses are optimistic about their volume of business, employment levels and turnover over the next six months. More than 500 Scottish firms responded to the survey, and the proportion of businesses which confirmed they have somewhat or very high confidence that they will continue trading through the next six months, has risen from 82.6% in the final quarter of 2020 to 91.8% in the second quarter of 2021. Accommodation and food services have reported positive sentiment over the quarter for the first time since Q3 2019 and expectations for over the next six months are the most optimistic since Q2 2014.
5G could provide £6.3bn boost to UK manufacturing by 2030
Mobile private networks can boost productivity in factories across the UK’s regions and nations, from Wales to the Midlands and the North East. A new report by Vodafone has found that the adoption of 5G could add as much as £6.3bn to the value of the UK manufacturing industry by 2030, transforming manufacturing operations and significantly increasing productivity. Investment in 5G in manufacturing could increase growth in the sector across the country, especially in the North West, North East, Midlands and Wales. The report, ‘Powering Up Manufacturing, Levelling Up Britain’ with economic analysis by WPI Economics, looks ahead to how the technology could impact the UK’s manufacturing industry and highlights how the adoption of 5G in the manufacturing industry could play a significant role in realising Government’s “levelling up” ambitions, especially in the North West, North East, East and West Midlands and Wales.
https://www.telecomtv.com/content/5g/5g-could-provide-6-3bn-boost-to-uk-manufacturing-by-2030-42046/
Funder provides £41m of support for North West firms over six months
Capital investor BGF has invested £41m in the North West in the first half of 2021, which it says cements its commitment to the region. BGF has provided growth capital for seven businesses with £20m of the total invested supporting new investments and £21m of positive follow-on funding for existing portfolio companies based across the region. Investments include £7.5m in Lancashire e-commerce logistics and tech company FulfilmentCrowd, backing double Queen’s award-winner DriveWorks, the fast-growing technology business, and investing in national courier company Speedy Freight following its year of record growth. BGF has also provided follow-on funding to portfolio businesses, including a £4m investment in fast growth, lead generation technology business, ROI. The deal came just seven months after BGF’s initial investment to support an acquisition and international expansion. Earlier this month, BGF made a £2.1m investment in digital mapping company, Gaist, taking the total invested to £4.8m.
UK economy growing at the fastest pace in 80 years, as EY ITEM Club upgrade growth forecast again
The UK’s economic growth prospects have again been upgraded in the latest EY ITEM Club forecast, published today. With COVID-19 restrictions lifting and the vaccines roll-out continuing to make progress, the EY ITEM Club Summer Forecast says the economy is now expected to grow 7.6% this year – the fastest rate of growth since 1941 – rather than the 6.8% predicted in April’s Spring Forecast. This is the second successive upgrade for the 2021 GDP forecast and means the economy is now expected to return to its pre-pandemic peak by the end of 2021 – two quarters sooner than expected in April and almost three years earlier than appeared likely in the 2020 Summer Forecast. Growth of 6.5% is now expected in 2022, an improvement from the 5% growth forecast in April. This will be followed by growth of 2.1% in 2023 and 1.6% in 2024. Quarter-on-quarter growth in 2021’s second quarter is expected to clock in at 5.1%, followed by growth of 3.2% in the third quarter and 1.9% growth in the fourth.