ECONOMYService sector slump points the way to recessionNew figures from the Chartered Institute of Purchasing and Supply revealed a poor month for the UK service sector last month, increasing claims the country i
s heading for recession. The CIPS figures showed hotels, restaurants and financial services companies hit an activity index level of 47.1 – anything below 50 denotes contraction. The gloomy news for the service sector comes after similar disappointing results from the manufacturing and construction sectors and is the first time all three sectors have been seen to contract since November 2001. UK economist at Capital Economics, Vicky Redwood said: "A weighted average of the three surveys points to GDP more or less stagnating by the end of the second quarter – a technical recession may be closer than we thought." Howard Archer, Global Insight's UK economist added: "The latest data indicate that the downturn is deepening, and the risk of recession is currently rising rapidly. The credit crunch, financial market turmoil slowing consumer spending and nose-diving housing market activity are clearly weighing down the services sector."
(The Scotsman)Credit report does nothing to dispel gloomThe Bank of England's latest quarterly credit conditions survey has increased the gloom surrounding the UK economy, with the central bank warning the economy is on the road to a nasty downturn. The report revealed that lenders had reduced the availability of secured credit to households in the three months to mid-June and that a further decline in the availability of credit was likely over the next three months. The figures point towards a severe downturn in the availability of mortgages while businesses will find it increasingly costly to fund their operations as lenders continue to make borrowing requirements more stringent. Vicky Redwood of Capital Economics said: "An end to the credit crunch does not seem to be in sight if the Bank of England's second-quarter credit conditions survey is anything to go by. Overall, it is further evidence that the economy is heading for a nasty downturn." Howard Archer at Global Insight added: "The further significant tightening of credit conditions for both households and corporate in the second quarter of 2008, and the expected continuation of these trends in the third quarter, does not bode well for domestic demand."
(The Herald) Read all today's economics news from scotsman.comFOOD, DRINK & AGRICULTURERoss to leave Belhaven on a highHead of Belhaven, Stuart Ross, is set to bow out on a high note after parent company Greene King hailed a strong year from the firm's Scottish division. Ross has been at the helm of the Dunbar brewer and pub operator for nearly 20 years and is now set to retire in the autumn. This year saw the group book profits up 18 per cent for the 53 weeks to May 4, which much of the credit going to a 34 per cent increase in food sales. Greene King group chief executive Rooney Anand commented: "Although all our divisions have performed well in difficult circumstances, I am particularly encouraged by Belhaven's results. Scotland's smoking ban came over a year before England's. In the second year of the ban, the Belhaven tem have developed the business significantly towards food and families." He added on Ross: "Since he joined the Greene King top team at the time of the acquisition, the whole business has benefited extensively from his experience and exceptional talent. On a personal level, I would like to extend my sincere thanks to Stuart for his commitment and support, and for his professional execution of the integration and ongoing development of the Belhaven business."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comINDUSTRYSwinney backs Pringle workersJohn Swinney, the Finance Secretary, has pledged to offer 'every support' to workers affected by the possible closure of knitwear manufacturer Pringle's factory in Hawick. Up to 80 jobs could go under plans that would see the manufacturing operation shifted from the Borders. Following a visit to the town, Swinney said: "What the government will do is make sure that every support that we possibly can make available to individuals and the wider Hawick economy will be available. Obviously if the company decides it no longer wishes to undertake its activities, we have to accept those decisions. But I will be talking to the company about what would make a difference to try to encourage them to retain more and more of their activity here in the Borders."
(BBC Scotland Online) Read all today's industry news from scotsman.comMEDIA & LEISUREGoals on course for 'excellent results'Glasgow-based Goals Soccer Centres has revealed it is in line to book 'excellent results' in a trading update released yesterday. The company now has sites located across the country from Aberdeen to Plymouth and is currently planning to rollout a further six sites year as well as international expansion in North America and South Africa. The trading update stated: "We have not seen any indication of softening demand for our next-generation offering, and we believe that our low admission price and the high loyalty associated with team sports indicates our business is resilient to any wider consumer spending downturn."
(The Herald)Science centre to cut jobsSome 28 jobs are to be cut at the troubled Glasgow Science Centre following a 40 per cent reduction in core funding from the Scottish Government. The centre currently employs 130 staff, but that figure must now be cut as a 'direct consequence' of the cut in funding, according to centre chief executive Kirk Ramsay. He told the BBC: "Despite widespread media and parliamentary attention on this issue and despite Glasgow Science Centre's repeated requests for a response and dialogue with the Scottish Government, we have received no reply. We now, unfortunately, have no option but to act in order to secure Glasgow Science Centre's future. The centre will now be forced to streamline its operation to safeguard its core mission of education but as funding from the Scottish Government is set to dip even further over a three-year period, it is likely that further changes will have to be made in the future." A spokeswoman for the Scottish Government refuted the claims: "The total budget to support Scotland's four science centres will increase from £2.43 million a year in 2007/2008 to £2.56 million a year over the next three years. Around half of this record public support will still go to the Glasgow Science Centre. We are planning to phase in a fairer and more sustainable package for Scotland's four science centres, based on visitor numbers, and the Glasgow Science Centre will also benefit from a two year transition period."
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comRETAILMunro pays out despite pre-tax lossAccounts filed with companies house have revealed that Scottish pharmacy chain booked a £3.5 million pre-tax loss in its last year of independence. However, the slump didn't stop the chain paying its highest paid director £2.9 million. The chain was sold to German-owned Lloyds in March in a deal which is believed to have netted the Munro family more than £20 million.
(The Herald) Read all today's retail news from scotsman.comPROPERTYBarratt to close Aberdeen officeUp to 1000 jobs could go in a restructuring of Barratt Developments' regional office network, which could see the closure of the housebuilder's Aberdeen office. The continuing gloom in the housing market has forced Barratt to begin consultations with its 6,700 staff which could see up to 1000 jobs go across the UK. Under the restructuring regional offices in Aberdeen, Chester and Sheffield face closure, with the Aberdeen operation likely to be merged with the firm's Edinburgh office. A spokesman for Barratt said: "Our number one priority is to ensure that Barratt's core skills are retained." Pressure has been increasing on the housebuilder since it paid £2.2 billion for rival Wilson Bowden in a deal completed at the top of the market, it is now burdened with £1.7 billion debt.
(The Scotsman) Read all today's property news from scotsman.com
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