Bri­tish in­dus­tries grow­ing faster than global av­er­age

The Daily Telegraph - Business - - Business - By Tim Wal­lace

AL­MOST ev­ery in­dus­try in Bri­tain is grow­ing faster than its com­peti­tors around the world, fur­ther rais­ing hopes of a “V-shaped” re­cov­ery as the econ­omy gets back to work.

The UK is well ahead of the global av­er­age in terms of re­turn­ing to growth, ac­cord­ing to a Lloyds Bank anal­y­sis of IHS Markit’s busi­ness sur­veys across dif­fer­ent coun­tries.

Twelve of the 14 in­dus­tries tracked showed growth above the global bench­mark, the bank said, led by met­als and min­ing, and by chem­i­cals. Bev­er­ages and food also ex­panded rapidly last month, as did soft­ware ser­vices.

By con­trast tech­nol­ogy equip­ment strug­gled, as did the em­bat­tled tourism and recre­ation in­dus­try.

The ma­jor­ity of busi­nesses have stopped re­port­ing falls in out­put caused by Covid, with a par­tic­u­larly sharp turn­around in the con­struc­tion sec­tor.

While al­most one-quar­ter men­tioned fur­lough­ing staff, and the same share dis­cussed re­dun­dan­cies, the num­ber re­hir­ing work­ers has picked up from 1pc back in April to 14pc last month, rais­ing hopes of a re­bound.

Mean­while a NatWest study of small busi­nesses found that more than onethird of SMEs re­ported growth in July, up from be­low one-in-10 at the height of the lock­down.

At the same time the num­ber shrink­ing is down from more than three­quar­ters in April to be­low three-in-10 now.

How­ever this is a touch slower than the re­cov­ery among big­ger com­pa­nies. “It’s wel­come news that, like the econ­omy over­all, small busi­nesses sen­ti­ment and ac­tiv­ity im­proved sharply in July,” said Stephen Black­man, prin­ci­pal econ­o­mist at NatWest.

“We shouldn’t read too much into their slight rel­a­tive un­der­per­for­mance. It’s likely a sec­toral story … small busi­nesses tend to clus­ter within ser­vices and con­struc­tion, sec­tors that re­cov­ered slightly slower than man­u­fac­tur­ing. The gap should nar­row, es­pe­cially for con­struc­tion, and may have al­ready done so.”

It comes af­ter the econ­omy grew by more than 8pc in June even be­fore ma­jor chunks of in­dus­tries such as hos­pi­tal­ity were al­lowed to re­open.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.