Connect with us

Hi, what are you looking for?

Editor’s Pick

New business formations hit four-year high as economy fights back from pandemic

New company formations

The UK has recorded the biggest surge in business formations in over four years as the economy fights back from the pandemic, official figures have shown.

Experimental data for the first quarter of 2021 showed 136,765 births – a 14pc rise compared to a year earlier despite the country languishing in a third lockdown and the strongest start to a year since the Office for National Statistics began collecting figures in 2017.

The economic vibrancy, also underlined by record mortgage lending in Bank of England lending figures, painted a stark contrast with a eurozone economy whose slump into a double-dip recession was confirmed by official estimates last week.

Retail accounted for about a third of the new businesses created over the quarter while the average number of employees per new business dropped from 2.8 to 2.3 during the past three months as ventures move online.

“Businesses are being created to a greater extent than before in industries where only a small number of employees are required, for example, online retailing,” the ONS said.

The rise in births outstripped a 7pc slide in company deaths compared to last year. Insolvencies have slumped during the Covid crisis as firms enjoy tax deferrals and protection from creditors.

Other signs of economic life came in the Bank of England mortgage lending figures after households borrowed £11.8bn in March alone to take advantage of the Chancellor’s stamp duty holiday – the most since 1993.

Households saved another £16.2bn over the month but paid down only £500m in borrowing during March, marking the smallest repayment since last October as the focus returns to spending.

Ruth Gregory of Capital Economics said: “These figures provide another reason to think that consumer spending was starting to gather some momentum in March. With consumers in position to power the recovery, this should mark the start of a rapid recovery that will push GDP back to its pre-crisis level in early 2022.”

Workers are also returning to offices in growing numbers after investment bank Morgan Stanley’s latest survey found employees working from home for 2.7 days a week on average, the lowest since last autumn.

However, fears over the longer-term impact of the pandemic on the workforce remain after ONS figures found that almost a third of the 1.3m workers over 50 still on furlough feared redundancy when the scheme ends in September.

Three in every 10 older workers, who are more vulnerable to long-term unemployment, rated their chances being thrown out of work at 50pc or higher.

Read more:
New business formations hit four-year high as economy fights back from pandemic

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

The Carphone Warehouse brand is set to vanish from the high street after Dixons Carphone changes the name of all its shops to...

Editor’s Pick

Bitcoin had a turbulent day, falling below $50,000 after reports that the crypto exchange Binance is facing investigations by the US Department of...

Editor’s Pick

Tunnelling in the Chilterns for HS2, the £100 billion high-speed line, began yesterday as ministers were told that multibillion-pound spending on rail links...

Editor’s Pick

Ten million people could have their second doses of coronavirus vaccines brought forward as the government attempts to stop a faster spreading Indian...

Editor’s Pick

Tens of thousands of Britons hoping for a holiday in Portugal this month had their plans plunged into chaos last night as the...

News

Every year, an estimated 1.35 million people worldwide die as a result of a road traffic crash. That is according to the World Health...

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

In Wisconsin and Ohio, farmers are dumping thousands of gallons of fresh milk into lagoons and manure pits. An Idaho farmer has dug huge...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!