Growth slows as higher interest rates and inflation ‘stifles demand’ but firms stay confident
High interest rates and inflation were partly behind a slowing in private sector business activity in May but the outlook and jobs growth remain strong, according to a key survey of purchasing managers. The NatWest East of England PMI® business activity Index posted 51.7 in May, down from 53.1 in April, signalling a slower growth in output. Some firms said that high interest rates and inflation had deterred new business as well as excess stocks at clients. Growth in demand for services eased since April and manufacturing new orders fell at a faster rate. But private firms in the region still reported higher business volumes in May for the fifth month running and the survey pointed to an overall confidence among private sector firms that output will rise over the next 12 months. Sentiment was little-changed on April’s 14-month high and firms widely expect an uplift in the economy once inflation falls further and interest rates have peaked. Private employment in the region rose for the fourth month running with recruitment driven by service providers. The May figures signalled another sharp rise in input price inflation with steeper cost increases at service providers and linked to wage pressures. But the rates of inflation for costs and charges eased in May after an uptick in April. Rashel Chowdhury, NatWest Midlands and East regional board, said: “In line with the wider UK trend, growth of output and new work in the East of England lost some momentum in May as high inflation and rising interest rates stifled demand….More encouragingly, the 12-month outlook remained relatively strong as firms expect an easing of inflation to stimulate demand later in the year.”
Strong harvest behind record start to the year at Port of Ipswich
Picture: Stephen Waller
www.stephenwaller.com
APB Port of Ipswich handled record exports and imports of over 1 million tonnes of exports and imports in the first five months of this year helped by flourishing trade in agribulks – boosted by a a strong harvest – and construction materials. The port broke the million-tonne mark at the end of last month when around 3,500 tonnes of Urea Fertiliser arrived in Ipswich from Damietta, Eqypt on board the MV Selecta. It was the largest fertiliser vessel to visit the port this year and was discharged using ABP’s dual-powered (electric and diesel) Mantsinen cranes. ABP recently marked 25 years of its ownership at Ipswich, which is the UK’s number one grain export port. Andrew Harston, regional director, Wales and Short Sea Ports, ABP said: “This milestone further cements Ipswich as a place of strategic national importance in relation to exports and imports, and the role the port plays in Keeping Britain Trading. We look forward to continuing a successful year in terms of cargo volumes so we can continue to contribute to the growth of the region’s economy.”
Separately, the Port of Felixstowe has taken delivery of six new semi-automated remote-controlled electric rubber-tyred gantry cranes for Konecranes of Finland, the first part of an order for 17 new cranes. Robert Ashton, chief operating officer of the Port of Felixstowe, said: “…The use of automated and remote-control technology improves the efficiency and predictability of service. Even more importantly it provides better and safer working conditions for our team members.” The new cranes were unloaded at the port’s Trinity Terminal before being transferred to Berths 8&9.
Suffolk-based software provider partners with Formula 1 team
A Stowmarket-based software business has become an official partner of McLaren Formula 1. Through a multi-year partnership the firm will support the McLaren F1 Team’s through its IT service management platform, HaloITSM. Privately-owned Halo, started in 2004, says it is the fastest-growing IT service management and professional services automation software provider in the UK and Europe, supporting some of the biggest organisations. From the 2023 Canadian Grand Prix, Halo branding will feature on the halo of the McLaren MCL60 F1 cars and on the team’s pit wall. Paul Hamilton, CEO, HaloITSM, said: “We are thrilled to partner with the McLaren Formula 1 Team as it embarks on a highly ambitious journey in pursuit of greater speed, higher reliability and unmatched efficiency.
Zak Brown, CEO, McLaren Racing, said:” In the competitive and fast-moving world of Formula 1, efficiency and performance is crucial across all corners of the business. Halo will enhance McLaren’s extensive IT services, helping us increasing our team’s efficiency and productivity.”
Awards for Suffolk design and craftsmenship
Three construction projects where Ipswich-based structural engineering design business Superstructures has been involved picked up awards at the recent RIBA Suffolk Design and Craftsmanship Awards. They were: ‘The Nest’, Bury St Edmunds built by TJ Evers and designed by Hoopers Architects, a new special educational needs and disabilities unit at St Edmunds Catholic Primary School which won the RIBA Suffolk Design Award for 2023; Copper Beech, Hollesley, a Barnes Construction development of six individual houses designed by Wincer Kievenaar Architects, which won the large project award , under the new building category and Woodfield, Sproughton, also under the new building category, and designed by Wincer Kievenaar Architects, a house built by Birch Construction for Seven Property, which won the award for best domestic building. Superstructures managing director James Potter said: “Recognition through these awards demonstrates that the best projects are those that are delivered as a real collaborative effort by the whole construction team.” The awards were presented at the annual Suffolk Joint Construction Committee supper at Trinity Park near Ipswich attended by over 350 guests.
Photo : ‘The Nest’, Bury St Edmunds a new SEND unit at St Edmunds Catholic Primary School.
Suffolk Central Business Park attracts first tenants with strong demand for next phase
Suffolk Central Business Park is rapidly gaining popularity as a leading office destination for businesses in Stowmarket and the surrounding area, with phase one now fully let and 75 per cent of phase two already under offer. With modern facilities and amenities designed to meet the needs of businesses of all sizes, the development offers flexible and collaborative workspaces.
The location of the scheme is ideal for companies that require easy access to the A14, with fast and convenient links to Felixstowe, Ipswich and Cambridge, as well as the wider motorway network. We caught up with David Lummis, Managing Director of Aaron Services, who was the first tenant to secure premises at Suffolk Central.
Q: Can you tell us about your experience moving into Suffolk Central Business Park?
A: The process from start to finish has been easy and enjoyable, supported by Richard from RLMH, who has been very hands on throughout the process with the office plans and our specific requirements.
Q: What sets Suffolk Central Business Park apart from others in the area?
A: We were looking to merge two offices into one space and our new offices provide the perfect modern and open environment for our two teams to come together. We had the opportunity to design our office layouts to meet our specific needs as a business, now and in the future as we continue to grow. The staff have been incredibly pleased with the move and their new surroundings.
Q: How has the location of the development impacted your business?
A: The offices are ideally located, not only for our locally based staff, but with good connections to our offices based all over the East of England.
Q: What are your thoughts on the strong demand for the next phase of development?
A: We are delighted at the prospect of welcoming more businesses onto the business park and for the area to become a hub of commerce and business development.
Richard Hudson, Managing Director of RLMH, said “We are thrilled to see the first phase of the development fully let. It’s a positive testament to the quality of the facilities and the excellent location, and we look forward to welcoming more businesses to the development as we continue with the second phase.”
The new office scheme is a hub for innovation and growth, offering bespoke accommodation from 2,500 sq ft upwards, together with design and build opportunities. A virtual tour is available here. The joint agents are Fenn Wright and Penn Commercial.
