Business News Round Up (30/05/2024)
Business group calls for closer post-Brexit ties with EU
A leading business group has called on the next government to forge closer ties with the European Union (EU) to help boost trade and lift growth. In a five-point manifesto, the British Chambers of Commerce (BCC) said “the government must negotiate improved UK trading terms with our largest trading partner “. The lobby group suggested that there should be “close alignment” on regulations that impact the UK’s global trade, such as manufactured goods. The UK officially left the EU in 2021 when the Trade and Cooperation Agreement came into force. Although the agreement guaranteed tariff free trade, it did not prevent non-tariff barriers from being introduced, many of which have impacted trade. According to the Office for Budget Responsibility (OBR), trade intensity across the board has fallen by 1.7% compared with 2019 whereas the G7 average has increased by 1.9%.
Scotland’s economy grows 0.7% in first quarter of 2024
Following growth of 0.1% in February, Scotland’s onshore GDP grew by 0.4% during March 2024, according to statistics announced by the Chief Statistician. In Q1 2024 GDP is estimated to have grown by 0.7% compared to the previous three month period. In March, services sector output, comprising about three-quarters of the economy, grew by 0.7%. Output in the production sector is estimated to have contracted by 1.1% in March. The largest contribution to overall GDP came from contraction in manufacturing and growth in the retail, wholesale & motor trades, and health & social work sectors. Economy Secretary Kate Forbes said: “It is welcome that the Scottish economy has returned to growth, despite the challenging global economic conditions we continue to face. It is encouraging to see growth across the majority of services, particularly the retail sector, as well as the wholesale and motor trades, and health and social work sectors.”
https://www.scottishfinancialnews.com/articles/scotlands-economy-grows-07-in-first-quarter-of-2024
The biggest deals in the North West for 2024
Experian published its biggest deals for the UK for its first quarter in 2024. After merger and acquisition value in the UK dropped to record lows in 2023, the opening quarter for 2024 saw an upturn in the market as macroeconomic conditions stabilised, according to Experian. Experian reported on a cautious start to the year in the North West, with deal volume dropping across the board. There were 165 transactions announced in the first quarter for 2024, which is down 26% from 2023. It is reportedly the second lowest quarter result since the start of 2020. Meanwhile, value dropped by 71% year-on-year to just over £1bn, with mega deals notably absent, while large deals fell from four in 2023 to three in the first quarter. Smaller deals were also down 45% year on year, but in the mid-market, deal volume is up by 8% and value by 20% to £482m.
https://www.insidermedia.com/news/north-west/the-biggest-deals-in-the-north-west-for-2024
Retailers enjoy May uplift as shopper optimism rises
Retailers have seen the quickest pick up in sales for 18 months as consumers enjoy the benefit of a little more spending power. New data from the CBI shows shop sales grew modestly in the year to May, their strongest since December 2022, though they are expected to fall moderately (-4%) next month. There is, however, some comfort in the figures which follow cuts to national insurance contributions and the fall in the rate of prices rises as well as lower energy costs. Inflation fell to 2.3% last month, close to the Bank of England’s 2% target, while a new price cap from July will see energy bills cut. The figures coincide with continuing wage growth which is easing pressure on household budgets. GfK’s consumer confidence index also shows optimism at its highest point in more than two years.
https://dailybusinessgroup.co.uk/2024/05/retailers-enjoy-may-uplift-as-shopper-optimism-rises/