Business News Round Up (30/03/2021)
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Business confidence up in March – but one in five firms expect to cut jobs
Confidence among businesses in Scotland is at its highest since the coronavirus pandemic began, but one fifth of companies are still expecting to cut jobs. The Bank of Scotland Business Barometer questions 1,200 firms each month to gauge economic and trading prospects. Its March report found confidence among firms in Scotland rose 15 points during the month to -2%, the highest reading since March 2020. This was attributed to the planned easing of lockdown restrictions, with shops and hospitality due to reopen from 26 April. But the report also found a net balance of 20% of firms in Scotland expect to reduce staff levels over the next year, up 16 points on last month. Companies reported higher confidence in their own business prospects month-on-month, up 6 points at -5%. When taken alongside their optimism in the economy, which was up 24 points to 2%, the increases give a headline confidence reading of -2%. Despite the increase, Scotland was the only area of the UK to give a net pessimistic reading during March.
https://www.insider.co.uk/news/business-confidence-up-march-one-23819263
New report finds prolonged youth jobs crisis is set to cost UK economy almost £7 billion next year
A new report released today from The Prince’s Trust and the Learning and Work Institute warns that young people will increasingly bear the brunt of the unemployment crisis, at a growing cost to the UK economy. The major study, supported by HSBC UK, shows how, while some areas of the economy might begin on the road to recovery, young workers are under-represented in these sectors, and the industries that typically employ young people will be hardest hit in the long term. The report, based on new labour market analysis and surveys with employers and young people, also warns that the pandemic will continue to exacerbate pre-existing inequalities. New economic forecasting reveals that, while young people’s employment has been worst affected by the pandemic with under 25s accounting for three in five jobs lost, youth unemployment is due to climb further still, even as the economy recovers.
Business confidence in the North West rise to the highest levels since February 2020
Business confidence in the North West rose 13 points during March to 26%, the highest level since February 2020, according to the latest Business Barometer from Lloyds Bank Commercial Banking. The data has been released just a week after the one-year anniversary of the first COVID-19 lockdown. Companies reported higher confidence in their own business prospects month-on-month, up five points at 15%. When taken alongside their optimism in the economy, up 20 points to 36%, this gives a headline confidence reading of 26%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. When it comes to jobs, a net balance of 3% of firms in the region expect to increase staff levels over the next year up eight points on last month.
UK consumers cut their borrowing at record annual pace in February – BoE
British consumers reined in their borrowing at the fastest annual pace on record in February, according to Bank of England data that could presage a spending-fuelled bounce-back for the economy as COVID restrictions are eased. Consumer borrowing dropped 9.9% year-on-year compared with February last year – just before the pandemic struck the West – the biggest fall since the series began in 1998, the BoE said. In February alone, borrowing was down for a seventh consecutive month although the pace of the fall eased. The data came as England’s stay-at-home lockdown order ended on Monday with people allowed to meet up outside in groups of six for the first time in nearly three months – the first in a series of steps to reopen the country and the economy. While repayments of consumer credit have fallen sharply during the pandemic, new borrowing has fallen by much more.