City’s economy recovering faster than UK average
CARDIFF is recovering faster than the national average, according to a new study.
The Avison Young’s UK Cities Recovery Index found the resilience of Cardiff’s economy has been evident following the recent “firebreak” lockdown.
Since the firebreak ended on November 9, the Recovery Index for Cardiff has increased to overtake the UK national figure and now stands at 80.6, compared to 77.4 on October 18. The UK figure currently stands at 70.8.
Since the beginning of August, and before the imposition of local restrictions and the national firebreak, Cardiff had been experiencing a speedier economic recovery compared to the wider UK. Perhaps not unexpectedly, a significant decline in mid-September led to the Recovery Index for Cardiff falling to 20.4% below the UK trendline by November 1.
“Immediately after the firebreak was lifted, we saw pent-up demand being released”, said Peter Constantine, managing director Avison Young, Cardiff.
“The retail and hospitality sectors were severely impacted by the local lockdowns, preventing travel into Cardiff from the rest of the country.
“This hit retail footfall in particular, leading to a drop in the retail sector index for Cardiff from 68.2 on October 23, to 56.9 on November 8. It has now started to rise again, standing at 67.5.
“In fact, since November 9, retail footfall in Cardiff has increased by 142%.”
Any increase in the hotel and leisure sector index has yet to make its mark, the report says, although it’s clear city-centre pubs and restaurants have been trading well since November 9.
However, the report also found that the wider hotel and leisure sector, including cinemas, has been widely affected by the impact of the lockdown, dragging the Recovery Index down, decreasing significantly from its August 31 peak of 92.8 to 56.3 on November 15.
Mr Constantine added: “It’s important to point out that although these downturns represent a significant impact to the Cardiff economy, they are some way off the 75% contraction in performance seen from the first set of national restrictions enacted on March 23.”
Between the first and second set of national restrictions in Wales, there have been some key differences.
Schools remained open for younger pupils in secondary school up to Year 9, and for those with special educational needs.
Support bubbles remained in place as well, meaning that single-person households were able to socialise with one other household.
People were also allowed to travel to work when their job could not be performed from home.
This is a key difference, with workplace mobility falling to 42.5 during the second national restrictions, rather than to the 27.0 trough observed in April.
The known duration is also likely to have benefited businesses in coping this time, as they were able to plan ahead.