Birmingham beats national average for economic recovery
Birmingham is currently outperforming the national average for post-pandemic economic recovery.
Avison Young’s new UK Cities Recovery Index, which monitors the speed and trajectory of post-COVID-19 economic activity in the UK, tracks key aspects of city life and the impact and rate of recovery across cities including Birmingham, London, Manchester and Liverpool.
Birmingham’s current position stands at 89.6, compared to the 85.8 National Index and above the likes of London, Manchester, Glasgow, Edinburgh and Newcastle.
– The Recovery Index indicator for Birmingham stands at 89.6 – outperforming the National Index of 85.8
– The Residential Sector Index reading for Birmingham is the highest of all cities at 129.8
– Birmingham’s data points for Commercial Activity are 97.9 – above London, Manchester, Edinburgh, Glasgow and Cardiff, but lower than Liverpool, Leeds, Newcastle and Bristol
– The Hotel and Leisure Sector Index for Birmingham has sustained above national average levels since July
– Birmingham lagging on Return to Office Sector Index at 63.3, well below the National Index which read 69.3
The best performing sectors for Birmingham include residential, which currently outperforms all other cities.
This data point recorded a near-high 129.8 on 27th September, greater than pre-lockdown levels.
In addition, the commercial activity sector index for Birmingham – which tracks industry activity, business sentiment and employment – is among the highest across the country.
Carl Potter, managing director for Avison Young in Birmingham, said:
“It’s encouraging to see the Recovery Index indicators for Birmingham outperforming those of the UK at a national level.
“Likewise, the city has the strongest levels of residential activity, driven by a post-lockdown residential boom, which levelled off during the summer but picked up again in September.
“Birmingham is also faring well for commercial activity, likely due to demand for industrial leasing space to cope with a surge in e-commerce and home delivery during lockdown. Hotel and leisure managed to sustain good levels, likely driven by a need to accommodate workers for the Nightingale Hospital.”
Mirroring other large cities including London and Manchester, Birmingham is lagging on the Mobility and Return to Office sector indices. A recent rise in Covid-19 cases in the city and additional social distancing measures for the area, as well as the newly imposed 10pm curfew on pubs and restaurants, is expected to slow recovery across these indices in the coming weeks.
Potter added: “While Birmingham is doing well, this is against a backdrop of a significant slow-down for the national Recovery Index after reaching a peak earlier in September, with further restrictions and rising rates of infection having a wholesale impact across city life.
“Birmingham is home to a vibrant leisure and nightlife economy, reliant on footfall and mobility of people. The city’s spike in cases, leading to local social distancing measures and pub and restaurant curfews, means we’re likely to see the rate of recovery slow or regress in the short term at least.
“As a large majority of professional and financial services businesses are located within the city core, and therefore able to adapt and continue to remote work for a sustained period, we don’t expect Birmingham’s indicators for returning to the office to recover at pace.”
