Manchester Monitor points to strengthening economy
THE latest data shows Manchester’s economic prospects continue to brighten, with some areas back to pre-recession highs.
The New Economy think tank’s latest Manchester Monitor, which compiles various socio-economic indicators, shows prime rents, lettings and hotel occupancy rates are rising, and unemployment is falling.
City centre office lettings jumped to 484,000 sq ft in the second quarter from 250,000 sq ft at the start of the year, while rents have been secured in Spinningfields at £32/sq ft, up from the previous high of £30. The monitor said prime rents were now higher than in Birmingham, Bristol, Cardiff, Edinburgh, Glasgow and Leeds.
The Greater Manchester labour market is strengthening overall, although with 3% of its resident working age population claiming Jobseekers Allowance, it still lags behind North West (2.7%) and UK (2.4%) averages.
Average hotel occupancy for 2014 stands at 75% – one point higher than last year’s average, and house price rises are slowing down slightly, with an average house in Greater Manchester now costing £106,300 (July 2014).
John Holden, acting director of economic strategy for New Economy, said: “The data in the latest Manchester Monitor tallies with recent UK GDP figures that show the national economy has now returned to its pre-recession peak levels. Indeed there are positive signs across the board in Greater Manchester, which highlight the increased resilience of our economy.
“However, with productivity and wages still lagging we are not fully out of the woods yet. A particular area to monitor closely is the labour market which, although on the face of it is showing positive trends, masks some risk factors. In particular, the shift to the new Universal Credit is flattering Jobseeker’s Allowance figures by a few thousand claimants in Greater Manchester. The very large falls seen in JSA claimants – while very welcome and a good sign of the improving economy – need to be treated with some caution.”
