Business news 11 November 2022
James Salmon, Operations Director.
GDP, Manufacturing, Markets, Consumer choices, COP27, Covid Support, growth visas, WFH and heath plus more business news.
GDP
The UK Economy contracted as GDP dropped by 0.2% in the third quarter of 2022. The preliminary estimate indicates that the economy performed better than expected in the third quarter, despite the downturn. (year on Year GDP is up 2.4%) Economists had projected a consensus quarterly contraction of 0.5%.
Manufacturing
Manufacturing production is down 5.8% year on year in the UK and industrial production falls 3.1%.
Markets
After inflation figures in the US came in below projections (0.4% in October (7.7% annually) compared with median expectations of 0.6% monthly and 7.9% annually). US markets surged. The S&P 500 rose 5.54% and the NASDAQ rose 7.35%. While the US dollar fell as markets changed their expectations for future interest rates.
The dollar also dropped with the pound buying $1.17 this morning and oil rose.
Consumer choices
With the UK hit by the cost of living crisis, it reveals what is important and what isn’t to consumers. Britons appear more willing to sacrifice nights out and new clothing, while they hold tight to gym memberships and streaming subscriptions such as Netflix and Disney+ according to You-Gov.
COP27
Scientists presenting to the UN conference on climate change estimated that global temperatures will breach the 1.5% limit set in Paris, in just 9 years.
UK companies took Covid support funds needlessly, report finds
A report by RSM and commissioned by the British Business Bank reveals that over 25% of the companies that took pandemic relief funds could have raised similar finance by other means.
PM considers ‘growth visas’ to bring in skilled workers
Rishi Sunak is considering the introduction of new “growth visas” to encourage skilled workers to come to the UK and plug shortages in the workforce. The new visa route – an idea devised by the Prime Minister’s predecessor Liz Truss – is “still being discussed” as a way to boost economic growth, a Downing Street source said. The idea could put the Prime Minister at odds with the Home Office, which, according to the Telegraph, is worried that figures due soon from the Office for National Statistics will show record high net migration.
WFH drives rise in neck and back pain
Figures from the Office for National Statistics suggest the rise in working from home during the pandemic has fuelled a surge in people leaving work due to back and neck pain. Some 262,000 people were out of work because of long-term sickness linked to neck and back problems between April and June this year – an increase of 30% from before the pandemic.
A total of 2.5m were classified as long-term sick between June and August, up by 500,000 since early 2019, with back and neck pain listed as the second biggest cause of new long-term sickness.
Young people are suffering the largest relative increase with over half a million 16 to 34-year-olds now unable to work as a result of long-term sickness, up by 140,000 since the pandemic. Among this group, around 200,000 are dealing with mental health issues – 30,000 more than before the pandemic. Problems include phobias, anxiety and depression.
PSC union votes for strike action
The Public and Commercial Services union (PCS), which represents more than 100,000 civil servants, has voted to strike in a dispute over pay, pensions and jobs. Mark Serwotka, the union’s general secretary, said: “The Government must look at the huge vote for strike action across swathes of the civil service and realise it can no longer treat its workers with contempt.” The union is demanding a 10% pay rise, job security, pensions justice and protected redundancy terms.
New car leasing deals have fallen by 13%
A report by the Finance and Leasing Association reveals the number of new cars bought on finance has fallen by 13% compared with a year ago. Concerns over high inflation and soaring interest rates were putting motorists off leasing contracts, the FLA’s Geraldine Kilkelly said.
Kwarteng: I warned Liz Truss over radical reforms
Former Chancellor Kwasi Kwarteng warned Liz Truss she was going too fast with her plans for the economy, he told TalkTV, and he told the ex-PM she would survive only three or four weeks if she sacked him. It turned out it was just six days, Mr Kwarteng said. He was dramatically fired by Ms Truss in October, two weeks after their tax-cutting mini-budget sparked turmoil on financial markets. She then ditched almost all of the plan in a bid to stay in power, but announced her resignation a few days later after support from Conservative MPs ebbed away.
Mr Kwarteng went on to say Rishi Sunak and the new Chancellor, Jeremy Hunt, should not attempt to blame him and Truss for all the Government’s present problems. “The only thing that they could possibly blame us for is the interest rates and interest rates have come down and the gilt rates have come down. I mean, it wasn’t that the national debt was created by Liz Truss’s 44 days in government.”
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.