Business in East Anglia

Surge in private business activity but fears of ‘second wave’ clouds outlook

Private business activity surged in the region in July as restrictions were eased ending a fourth month decline which started with the lockdown in March. The headline NatWest East of England business activity index covering manufacturing and services rose to 56.3 in July, up from 49.1 in June and the sharpest rate of expansion since February 2018.

The degree of optimism also improved and although job shedding remains sharp, it was the softest seen since March. But outstanding work at private firms in the East continued to fall in July and average input costs faced by companies in the re...

Region’s office market turns down but demand for industrial space holds up

The commercial property market in the East of England is in “some stage of a downturn” and most surveyors in the region in the region expect retail and office rents in the region to fall as firms use less space and more people work from home over the next two years, according to the second quarter RICS commercial property survey.

However demand for industrial space rose in the region in the period and there is growing interest nationally in ‘secondary units’ such as shops, partly for their potential for conversion to housing. Nearly half of those surveyed saw occupier demand fall ...

Growth forecasts cut but prospects for 2021 brighten

A major forecasting group has downgraded its short term economic outlook and warned of a fall in long-term investment although it believes prospects for 2021 are looking slightly brighter. The EY ITEM Club summer forecast is now assuming UK gdp will shrink by 11.5 per cent this year, which compares with an 8 per cent contraction it was expecting only a month ago. With hopes of a V-shaped recovery fading, it now believes the economy shrank by a fifth in the second quarter, partly driven by weakness in May as Covid-19 took its toll on the services sector. Unemployment is set to more than...

‘Significant increase’ in demand for advice from insolvency practitioners

Research among R3’s insolvency profession members shows there has been a significant increase in existing and new clients requesting support on how to manage reduced demand for their products and services .

Clients are also asking for guidance on how they can manage working capital shortages in cashflow forecasts. Meanwhile, a surprise fall in the number of corporate insolvencies across the country does not yet reflect the effect of the pandemic on businesses, according to the Eastern branch of R3. Insolvency Service figures show that there were 732 company insolvencies in England and W...

Business activity survey hints at downturn 'nearing an end'

The business outlook for the East of England over the next 12 months rose to a four month-high in June, as firms increasingly expect higher activity and a return to normality in coming months. A marked slowing in the rate of reduction in activity was “hinting that the private sector downturn is nearing an end,” according to NatWest. The bank’s East of England business activity index – which covers manufacturing and services – rose sharply from 33.4 in May to 49.1 in June. Private sector firms in the East said new order intakes were broadly unchanged from the previous m...