Member Article

Mixed signals in Manchester economy

The Greater Manchester economy is showing mixed signals of wellbeing, according to think-tank New Economy’s latest monthly analysis.

Passenger numbers at Manchester Airport have returned to growth with 2.04 million passengers recorded in June 2012, and hotel occupancy remained healthy with rates at 76.5% and 76.7% for Manchester city centre and Greater Manchester respectively.

Elsewhere unemployment amongst people aged 16 and over fell by 10,000 to 319,000 (9.1%) across the North West between April and June, however the numbers claiming Jobseeker’s Allowance rose to 84,600 across Greater Manchester in July, from 83,700 in June.

Housing remained stagnant as the average property in Greater Manchester cost £104,228 as of July 2012, virtually the same as June.

In commercial property, rents for industrial and retail space have held steady whilst rent for prime office space have slightly declined.

Manchester’s ‘Tomorrow’ digital project introduces 180,000 sq ft of office space across 20 buildings, with speculation that Apple might be involved with the project.

Baron Frankal, director of economic strategy at New Economy, said: “The new term brings more of the same very mixed signals, both from the local and the national economy. Clearly, confidence is still very low, but that is more about uncertainty than doom, with businesses and households in prolonged “wait and see” mode.

“As Manchester Airport’s Stansted bid prepares for take off, its profits are up, as are its passenger numbers, cementing its place as the UK’s third airport. The 120 jobs easyJet is bringing today, and the thousands that the expansion of Airport City will bring tomorrow are symptomatic of how a raft of forward-thinking strategies and investments in Greater Manchester are slowly coming through and delivering more growth, helping to explain why we seem to be more buoyant in times where others around us are starting to sink.

“The jobs figures present a rather confusing picture, clouded perhaps by upward pressure from young people leaving full-time education and by a reduction in economic activity as people are in various programmes that result in them moving off benefits.

“Though the figures remain bad, with a risk of getting worse, Greater Manchester continues to be broadly more resilient in terms of job creation than both the North West as a whole and our comparator cities like Leeds and Sheffield, and so there is a message in the Monitor about us doing something right.”

This was posted in Bdaily's Members' News section by Tom Keighley .