- Advertisement -

    Business formations hit four-year high as economy fights against pandemic


    - Ad Keep reading below -

    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.

    - Ad Keep reading below -

    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.

    ALSO READ  The world’s first fully functional foldable laptop unveiled in South Africa
    - Ad Keep reading below -

    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.

    ALSO READ  Iraq: Kurdistan security forces storm opposition TV channel, suspend broadcast

    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.”

    - Ad Keep reading below -

    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.

    ALSO READ  Wafanyabiashara wa saruji mkoani Tabora waonywa

    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.

    ALSO READ  Watoto wa Trump wawashutumu wanachama wa Republican kwa 'usaliti'

    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 any article below now-
    Dr john Masawe
    Medical Laboratory Scientist (MLS) |Dancer|Software Developer|Multitalented|??|Entrepreneur|Researcher ? Founder, CEO, Admin and Publisher Of This Website

    Latest news

    Pep Guardiola vs Thomas Tuchel: Complete head-to-head record

    The upcoming Champions League final will see two familiar faces square off in the dugouts when Pep Guardiola's Manchester City face Thomas Tuchel's Chelsea.The...

    SUG reacts to release of abducted ABSU student, lauds Ikpeazu, security agencies

    The Students’ Union Government (SUG), has reacted to the release of the abducted student of Abia State University (ABSU) Uturu, by unknown gunmen, on...

    Businessman Strips 'Mabati' Out of Hospital Over Unpaid Tender

    A disgruntled businessman resorted to removing iron sheets he'd supplied for the construction of a hospital in Uasin Gishu county over nonpayment by the...
    - Advertisement -

    You might also likeRELATED
    Recommended to you

    - Advertisement -
    %d bloggers like this: