Business News Round Up (29/05/2020)
UK accounts for almost one third of foreign investment in European tech
Foreign investment in UK digital technology accounted for 30% in Europe in 2019, more than France and Germany combined. The UK attracted 432 projects with foreign investment, representing a 36% year-on-year increase – four times faster than the average. Digital tech has accounted for the largest number of foreign investment projects in the UK in every year since 2013. R&D projects in the UK also grew by 38% to 102, and now represent almost one fifth of the European market.
Scotland’s economy has lagged behind UK since devolution
Economic growth in Scotland has lagged behind the UK over the past 20 years, according to an analysis of GDP data. John McLaren’s Scottish Trends report analysed data between 1998 and 2019, finding growth slowed considerably after the 2008 financial crisis. Information & Communications and Business services have seen the biggest growth in Scotland in recent decades, but also have the biggest gaps to the same sectors UK-wide. In fact, business services have been static over the past five years north of the border.
https://www.scotsman.com/news/politics/scotlands-economy-has-lagged-behind-uk-devolution-2867269
Confidence rises but remains near historic lows – Lloyds
Business confidence in the North West picked up in May, but remains near historic low, according to the latest Business Barometer from Lloyds Commercial Banking. Business confidence increased 10 points during May to -25%. The majority of companies continued to see demand negatively affected during May, with the picture relatively unchanged month-on-month. The number of businesses in the region operating at less than 50% capacity decreased six points to 43%, while 23% were not operating at all, up from 18% in April. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. In an illustration of the impact COVID-19 is having on the region’s business, the majority of firms continued to see demand negatively affected during May, with the picture relatively unchanged month-on-month.
https://www.insidermedia.com/news/north-west/confidence-rises-but-remains-near-historic-lows-lloyds
Signs of recovery but business confidence remains near record low
Business confidence in Scotland remains near record low levels despite signs of recovery, according to the latest Business Barometer from the Bank of Scotland. Business confidence increase 17 points to 33% during May. The survey found 65% of Scottish firms experienced a fall in demand for their products and services, down seven points on the month before. Meanwhile, 12% had an increase in demand, up on 5% in April. There are also signs companies are starting to reopen after shutting down completely in April. The number of Scottish firms operating at less than 50% capacity increased 18 points to 43% while a fifth of firms were not operating at all, down from 32% in April. Three-quarters of businesses reported disruption to their supply chain, with 14% of those saying it would take more than a year for it to return to normal.
https://www.insider.co.uk/news/signs-recovery-business-confidence-remains-22102661