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Manchester City performing better than last month
Thu 1st Jul 10 - 11:56

Manchester Monitor shows city performing better than last month, but downside risks remain

The Commission for the New Economy released its Manchester Monitor today, a monthly report on the state of the Greater Manchester economy. The Monitor reports that the city’s economic performance has improved from last month, but that risks remain for the economy.

Crucially, jobseeker queues have shortened this month to 77,213 – the first annual fall in claimants since May 2008 – and the number of job opportunities has increased by 43% on the year. Alongside this, the number of business mergers and acquisitions in Greater Manchester is showing some improvement, rising marginally to 14 deals in May.

The city centre is also performing well – retail turnover in the city centre has experienced a 7% annual increase, as opposed to a national decrease of 2%; footfall has also increased, rising by 9% year-on-year; and hotel occupancy has also risen over the year to 71% in April.

However, uncertainty still exists in the city. The Icelandic ash cloud affected airport performance, with Manchester Airport seeing a 14% fall in passenger numbers on the month. This compounds the effect of the recession, as passenger numbers were already down 7% on the year in the previous month.

House prices have also stayed relatively static. The average house price in Greater Manchester rose just £23 in April – alongside a rise of £27 the month before. Home sales have also shown an annual decrease, with the number of home sales dipping dramatically after the increase in stamp duty at the start of the year. Recent research shows that more houses are being put up for sale as a result of the withdrawal of Home Information Packs. However, this could continue to suppress average house prices, especially if the growth in sales is significant.

Baron Frankal, Director of Economic Strategy at New Economy, said:

“Indicators suggest the economy may be moving slowly out of recession. It is hard to tackle problems of pessimism and uncertainty in the market after such a prolonged recession, and Manchester is no exception. Cuts in the public sector will undoubtedly lead to job losses, but Manchester is better placed than most to weather this. Things may get worse before they get better, but Greater Manchester sees opportunity in this challenge.”

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