Business News Round Up (29/06/2021)
New data suggests UK ‘poorest’ country in north west Europe
The UK has the lowest level of economic output per head of population of all countries in north west Europe, according to new research. The House of Commons library data puts the UK behind 13 neighbouring countries, including Ireland, Norway, Sweden, Finland, Denmark, Belgium, the Netherlands, Iceland, Switzerland, Luxembourg, Austria, France, and Germany. According to the research, which uses figures from the International Monetary Fund (IMF), the 13 countries produce more gross domestic product per person than the UK and have done for the past 21 years. Existing figures put the UK’s GDP per capita at £31,038 per person in 2021, placing it at the bottom of the league, behind France on £32,622 per head, and Finland which has a rate of £34,187. Top of the league was Luxembourg at more than £80,000 per person, followed by Ireland at £65,411 and Switzerland on £50,015.
Latest Chamber survey points to region seeing substantial increase in customer demand
The success of the vaccination programme and relaxation of Covid-19 restrictions have contributed to a substantial increase in customer demand, according to the findings of this quarter’s Economic Survey (QES) conducted by Greater Manchester Chamber of Commerce. The QES based composite indicator for our city region, the Greater Manchester Index, improved by 24 points as all three sector groups – services, manufacturing and construction show signs of a rebound after the economic shock of 2020. The survey of over 300 businesses reveals that sales to both domestic and overseas customers increased in this quarter. The Greater Manchester Index now stands at 30.4, an increase of 24 points from the previous quarter’s results. Led by construction sector activity, current sales and advance orders from domestic customers increased relative to Q1 2021. The divergence seen in Q1 in the performance of different sectors has narrowed down. Whilst 60% of construction sector respondents reported improved sales, just over half of manufacturing and service sector businesses reported that their sales to UK customers had increased in this quarter. Since the services group accounts for well over 80% of the city region’s economy, sustained economic recovery depends on growth in services.
UK borrowing exceeds repayments for first time since start of pandemic
Consumers in the UK borrowed more than they paid off in May for the first month since March 2020, a sign of the pressure the easing of lockdowns has put on the UK economy and people’s finances. According to data released on Tuesday morning by the Bank of England (BoE), despite making significant net repayments of consumer credit since March 2020, May saw net borrowing of £300m ($415.3m). The annual growth rate remained weak but rose to -3.2% in May from -5.7% in April, the Bank said. The increase in net consumer credit reflected an additional £400m of ‘other’ forms of consumer credit, such as car dealership finance and personal loans. A swathe of data has pointed to a boom time for the UK economy as lockdowns head towards the final stages of easing. Record spending on hospitality and clothing has charged GDP and UK consumer confidence has held steady despite rising Delta virus cases and the threat of inflation.
Furniture manufacturers benefit from digitalisation support
Five furniture manufacturers are among the latest secured support from a programme helping businesses boost productivity and growth using digital tools. The latest businesses to sign up for support from the Made Smarter Adoption programme in the North West include Dan Hurtley, a furniture and interiors solutions manufacturer, based in Lancaster, and Multiwood Products, a distributor and producer of kitchen doors and components, based in Bury. Meanwhile, manufacturers which have already experienced the benefits of the Government-funded, industry-led programme are now taking the next step on their digitalisation journeys – including Inscape Interiors, a manufacturer of building interiors, based in Chorley, Pendle Doors, a doormaker in Blackburn (pictured), and Forest Sofa, a furniture manufacturer based in Salford.