Although more than 147,000 cars rolled off UK production lines in March, this was down 13.3% on the same month in 2017 and exports also fell by 11.9%.
Highlighting the importance of the automotive industry to Britain’s economy and jobs, the Society of Motor Manufacturers and Traders (SMMT) said that a double-digit decline in car manufacturing for both home and overseas markets was of considerable concern.
Overall output in the first quarter (Q1) of 2018 fell by 6.3%, with 440,426 cars leaving production lines in total this year. Almost 80% of these were exported although demand from overseas customers fell by 4.0% in the quarter.
SMMT Chief Executive Mike Hawes said: “Following recent announcements on jobs cutbacks in the sector, it’s vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements.”
He described free and frictionless trade as an absolute priority for the industry and pointed out that Britain’s vehicle and component manufacturers are important contributors to the UK economy being responsible for 13.0% of all the country’s export in goods.
For every £1 generated by the industry, Mr Hawes explained, £3 are delivered to the economy via adjacent sectors such as logistics, retail and finance, with SMMT calculations putting the total economic impact at £219 billion – 10% of UK gross domestic product.
UK GDP growth slows to six-year low as construction output falls and services output weakens.
UK real wage growth returns to positive territory as inflation continues to slow.
While US GDP growth slows in Q1, IMF upgrades its global GDP growth forecast expectations.
The UK economy grew by 0.1% in Q1 2018, the slowest rate of growth since Q4 2012 and slower than the growth of 0.4% recorded in Q4. In annual terms, the UK economy grew by 1.2% in Q1, down from the growth of 1.4% recorded in Q4. Overall, the first estimate of UK GDP for Q1 2018 supports our view that growth in the UK economy is becoming more subdued.
Pay growth is now outpacing price growth for the first time since early 2017. However, while the end of squeeze on real wage growth is an important moment, maintaining positive real wage growth could prove challenging without sustained increases in productivity and relieving the high upfront costs which restrict pay increases.
The first estimate of US GDP revealed that the US economy, the world’s largest, grew at an annualised rate of 2.3% in Q1 2018, the slowest rate of growth since Q1 2017 and lower than the growth of 2.9% recorded in the previous quarter. The slowdown was largely driven by consumer spending, which accounts for two-thirds of US economic output, growing by 1.1% in Q1, a sharp slowdown from the 4% increase in Q4 2017.
Representatives from Norfolk, Cambridgeshire and Suffolk – the three counties the A47 trunk road runs through – stand united in calling for the Government to fully dual the road between Peterborough and Lowestoft, a meeting heard today. Members of the A47 Alliance came together at County Hall in Norwich today (Friday, 11 May) to discuss ongoing efforts to convince the Government to invest in the A47. Currently just 47% of this major route is dual carriageway and while Highways England have committed to making £300m of improvements to the road, including dualling some stretches, this will still leave substantial sections of the A47 as single carriageway with no current plans to dual them. The Just Dual It! campaign, which is being led by Norfolk County Council, Norfolk Chamber of Commerce and the Eastern Daily Press, is calling on the Government to commit to make funding available to dual the entire length of the A47 by 2030. Since launching at the end of March, the campaign has received more than 2,000 messages of support from residents, businesses and political figures, whose reasons for wanting the route fully dualled range from road safety, shortening journey times and improving journey reliability and creating a better transport link between the east of England and the Midlands and beyond. At today’s meeting representatives heard updates on the campaign from Chairman of the A47 Alliance and Norfolk county councillor Martin Wilby, MP for Mid Norfolk George Freeman and Mayor of Cambridgeshire and Peterborough James Palmer. Martin Wilby said: “We knew a lot of people felt very strongly about getting the A47 fully dualled but the widespread support for Just Dual It! has shown that this campaign crosses borders and matters to people from all walks of life. As it stands, the road is a source of regular frustration and concern. Fully dualled, the A47 would be an asset to counties in the east of England, supporting business growth, boosting tourism and improving day-to-day life for hundreds of thousands of people. “We’ve waited long enough, it’s time for the Government to commit to fully dualling this major route – and we won’t rest until they do.” George Freeman MP said: “While I am very proud that we have managed to secure the £300 million required for the first phase of A47 dualling, it is imperative that we now get the rest dualled in order to improve safety and ensure that Norfolk has the 21st century transport system it deserves. Only then can we unlock the true economic potential of our great county.” James Palmer said: “Dualling the A47 is essential for the future prosperity of the northern part of East Anglia. “I have been only too pleased to lend my support to the A47 Alliance and the Just Dual It! campaign. When I became Mayor of Cambridgeshire and Peterborough last year, I made the A47 one of my key transport priorities. I felt the Highways England proposals already on the table – the dualling of 2.5km of road from Wansford to Sutton and improvements at the Guyhirn roundabout by 2021 – were not nearly ambitious enough. “Big regional campaigns like Just Dual It! really do make a difference to decision makers in Whitehall and I stand ready to make the case for dualling the A47 as loud and as clear as possible on behalf of Cambridgeshire and Peterborough.” The importance of dualling the road to the regions’ businesses was also stressed at the meeting, and their support for the campaign is seen as key to getting Westminster to invest in the road. Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:”The full dualling of the A47 is a ‘must have’ for Norfolk Chamber and the local business community in order to deliver greater economic growth and jobs in this region. From tourism to logistics, manufacturing to research, all sectors across our region rely heavily on the A47 as our main road artery East to West and onwards to the Midlands. Improvements to this route are vital to help us to remain accessible and competitive.” Richard Perkins, Suffolk Chamber representative to the A47 Alliance, said: “Suffolk Chamber of Commerce have been supporting their members in North East Suffolk for a long time in seeking to substantially improve the A47, which is the only trunk road serving the area and provides vital links to Great Yarmouth, Norwich and the UK in general. The creation of a fully dualled A47 is robustly endorsed by Suffolk Chamber, its members and the business community in general and will greatly facilitate the accelerated economic growth of the Energy Coast areas of Lowestoft and Great Yarmouth.” There are several ways that businesses can show their support for the campaign to get the A47 fully dualled, including:
These messages will be transferred onto a Just Dual It! postcard, which will then be hand-delivered to Westminster in the summer to evidence the strong support that exists for getting the A47 dualled.
The International Trade Team at Norfolk Chamber is delighted to offer a new Training Service from January 2013.
Through our linkage with the British Chambers of Commerce, 6 x Level 2 (VQ Terminology) courses have been identified, which form an export curriculum that provides invaluable basic skills for small and large companies alike.
Candidates will have to demonstrate knowledge of the subject and their performance will be marked by external examiners on the completion of each module.
Successful candidates will receive a certificate; completing all six courses will result in the candidate achieving a nationally recognised Foundation Award in Exporting.
These courses are suitable for both experienced exporters and those with no previous knowledge of exporting.
The 6 course titles include:
Understanding Exports
Methods of Payment
Export Documentation
Incoterms® 2010
Letters of Credit
Import Procedures
These new courses will replace the existing courses that Norfolk Chamber has been delivering for many, many years although, they are very similar.
The courses will still be delivered by our trusted and accredited trainer Mike Strawson, who has been working with us for years. Those of you who have attended our courses will know that Mike has an incredible knack of delivering the content in such a crystal clear manner, delegates walk away with a sound understanding of the subject.
Norwich Chamber Council met recently and invited Andrew Bell, CEO of Norwich International Airport (NIA) to provide an update on the airport. Andrew advised that NIA had enjoyed 4 years of double-digit growth and that they were now operating a much more streamlined business. Their offshore service was improving and a fourth helicopter had joined the fleet based in Norwich. NIA’s core route is to Amsterdam and this route was performing very well. Andrew also advised that the airport was looking to increase their Summer 2013 programme for package holiday traffic.
The Chamber Council’s economic round table discussions highlighted that Norwich businesses are finding it tough and it was apparent that some firms were finding it hard to finance their growth aspirations, as bank lending was proving difficult. Additionally businesses looking to recruit were struggling to find the right calibre of staff.
Chief Operating Officer at Tech East,Tim Robinson will provide an update on the organiation’s mission to establish the East of England as the next global tech cluster and promote digital excellence across the region. Businesses will hear about the accelerated growth of exciting tech companies throughout Norfolk and the positive impact this has on the Eastern region. Tim will also examine the increasing availability of tech and digital skills throughout Norfolk and beyond. The event will be hosted by the Chamber’s Chief Executive, Chris Sargisson, who will facilitate an interactive Q+A session to close the event. The networking event at Barnham Broom Hotel will provide Norfolk Chambers with a chance to meet likeminded businesses, form valuable new connections and raise their profile in the Norfolk business community. Book your place at the event here.
With only two weeks to go until our Norwich Business Breakfast, now is your last chance to book onto our ever-popular breakfast in the centre of Norwich. Don’t miss the opportunity to hear from ofo’s Regional Operations Manager Matthew Thomas-Keeping who will be talking about the company’s evolution from 2014 to now. Matthew will discuss the context of bike sharing as a force to change urban mobility and where bike sharing will be heading in the coming months and years, in the context of Norwich. In usual Chamber style, we will also be providing:
A luxury Norwich venue
Lots of coffee and a full English breakfast
Our trademark networking activities
The rest is up to you! You will meet lots of other Chamber members at our most popular, and often sold out, Norwich Breakfast and hopefully leave (potentially on an ofo bike!) having made new business connections. Click here to book your place onto our Norwich breakfast.
July 2012 retail sales volume up 0.3% on the month, up 2.8% on the year
Annual high street inflation slowed to 0.2% in June, the lowest since 2009
Commenting on the retails sales figures for July 2012, Caroline Williams CEO Norfolk Chamber of Commerce said:
“UK Retail sales made modest but satisfactory progress in July, with the monthly increase higher than expected. The 2.8% annual increase in retail sales volumes supports our belief that some of the pessimism surrounding the recent performance of the UK economy is unwarranted. This figure provides hope that in the third quarter of the year we will see some recovery in economic activity. There is no doubt that retails sales across Norfolk can be patchy but the success of the Norwich BID and the stream of national names heading from Norfolk demonstrates our continued retail strength. We have a lot of talented retailers in Norfolk and we need to ensure that they are supported especially those in the independent sector who are finding the current economic situation particularly challenging.
“The further decline in high street inflation is also welcome news. This will support disposable incomes and consumer spending, at a time when austerity and the eurozone crisis continue to put the economy under pressure.
“Despite the positive job market figures published this week, it is clear economic growth in the UK is still far too weak. We will continue to encourage the government do much more to help businesses to grow and create jobs at a time when the public sector continues to shrink.
“We need to see more measures to boost Norfolk infrastructure and strengthen the construction sector, alongside forceful deregulation and moves towards the creation of a state-backed business bank. It is also important to ensure that the Funding for Lending scheme is made to work effectively so that credit-worthy businesses are able to grow. We are working with our Business and Finance Group (BFC) made up of the key financial businesses banks and accountants to monitor what is happening in Norfolk
Eleven government departments have each appointed a Head of International Trade Profession to champion trade negotiation skills and help ensure that the UK develops appropriate expertise.
The International Trade Profession aims to raise the skills and ambitions of those working, or aspiring to work, in international trade by opening up new roles and career opportunities in the UK Government, supporting talented people to develop careers in trade and providing a training programme for them.
Announcing the initiative, the Chief Trade Negotiation Advisor, Crawford Falconer, said: “We are ensuring government attracts the best and brightest talent by not only offering trade professionals a clear route into working on trade policy, exports and investment at the centre of government but also nurturing their ability for the future through access to world-class training.”
The need for the UK to develop its own trade negotiation capacity has been highlighted by Brexit, with the possibility of the country having to take on responsibility for something that for many years has been the responsibility of the EU.
Commenting on the announcement, International Trade Secretary Liam Fox said that, by establishing the International Trade Profession, the Government has embedded the development of trade negotiation capability at the heart of its agenda and taken another important step in getting UK trade policy Brexit-ready.
That view was echoed by CBI Director-General Carolyn Fairbairn who commented: “Business will warmly welcome the appointment of Heads of International Trade Profession across Whitehall, demonstrating that the Government is building expertise and capability in a crucial area for post-Brexit Britain.”
There’s still time to book your early bird stand at B2B 2018. You can save £50 on the cost of your stand if you book online by Friday 25 May.
Celebrating its 20th year in 2018, the B2B Exhibtion brings together the finest business minds in Norfolk and beyond, giving you access to hundreds of businesses contacts that are looking for bright ideas and are keen to explore new opportunities.
B2B 2018 is the region’s premier business to business exhibition, offering your business a unique opportunity to maximise visibility of their brand, raise your profile and show Norfolk what you can offer.
Booking early not only saves you money, but offers you priority booking to reserve your preferred stand location.
Here at Norfolk Chamber of Commerce we respect your privacy and are committed to protecting it. As you know there are changes in data protection law, so we wanted you to know we’ve updated our privacy policy.
Your trust and protection of your data is important to us, and we want to make sure you understand what these changes mean for you. This Privacy Policy is designed to inform you of our policy and practices and to tell you of the way your information is collected and used.
Norfolk Chamber ensures that any data received will be processed in accordance with the General Data Protection Regulation.
As result of GDPR we have recently sent a number of emails to our contacts to opt-in to continue receiving our email marketing. If haven’t yet responded and want to keep receiving email communications from us, you can sign up here.
If you have any questions about how we manage your data please call 01603 625977 or email hello@norfolkchamber.co.uk
Commenting on the labour market figures for May 2018, published this week by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“With unemployment declining and employment levels continuing to rise, the latest data confirms that the labour market remains a bright spot for the UK economy. However, while the latest figures are likely to reinforce the MPC’s hawkish rhetoric, labour market data tends to lag behind the wider economy, so any broader weakening in economic conditions wouldn’t be expected to appear in the figures for some time.
“While regular earnings growth continues to marginally outpace inflation, the decline in UK productivity in the first quarter is a clear warning sign that positive real wage growth should not be taken for granted. While businesses are reporting some upward pressure on pay, sluggish productivity and high upfront business costs are restricting the extent to which wages are able to rise.
“More needs to be done to support firms looking to recruit and grow their business, including tackling the high input costs faced by businesses and addressing the chronic labour shortages that continue to undermine the UK growth prospects.”
Commenting on the labour productivity statistics, Suren added:
“The fall in the first quarter is disappointing and shows that the recent pick-up in productivity was relatively short lived. The decline in the quarter was driven by weaker than expected GDP growth outturn in Q1 and the recent pick-up in hours worked.
“The persistent weakness in UK productivity reflects the longstanding structural problems in our economy from a chronic skills shortage, to our creaking infrastructure and the escalating cost of doing business in the UK. Delivering solutions to these key business concerns would help boost investment and drive the productivity gains we need to boost the UK’s long-term growth potential.”