Latest South West Regional Economic Indicators - June 2011

Manufacturing

• From 2007 to 2008, manufacturing investment by foreign-owned companies in the South West fell by £106m, the second largest fall nationally (North East -£124m).  Despite this, foreign-owned companies contributed £253m more to SW manufacturing GVA in 2008 than 2007.  

• SW manufacturing investment by UK-owned companies also fell between 2007 and 2008, from £573m to £479m (-16.5%), but below the average UK fall (-18.9%).  The contribution of UK-owned companies to SW manufacturing GVA fell by £1,359m between 2007 and 2008 (-17.6%, UK -12.3%).  

• These changes mean that GVA per pound invested in SW manufacturing was higher for foreign-owned (£14.60) than UK-owned companies (£13.30) for the first time since 2004.

 Exports

• The latest regional trade data include large revisions to the SW data.  Previous data showed a substantial (and unexpected) increase in SW transport and machinery exports between Q4 2009 and Q1 2010.  This has now been almost entirely reallocated to Wales.  Previously, total SW goods exports rose by £3.3bn between 2009 and 2010; the revised figure is £0.4bn. 

• In Q1 2011, the South West exported £3.0bn worth of goods, a 6.4% rise quarter on quarter (UK 1.6%) and a 14.0% rise year on year (UK 17.4%).  

• In Q1 2011, the South West had the second smallest share of UK total trade in goods – 4.2%  only ahead of Northern Ireland’s 1.9% share.  

• Between 2009 and 2010, the value of SW exports to every part of the world increased.  The revised figures no longer show a dramatic increase to non-European markets – the share of SW goods exports to Europe has been revised upwards for the year to Q4 2010, from 45.9% to 58.3% of total exports (57.8% year to Q1 2011)

• The revisions have had little effect on the number of exporting companies in the South West (a net change for 2010 of 2 companies).  Between Q4 2010 and Q1 2011, the number of exporters fell by 268 in the South West (-6.9%, UK -6.3%).

Labour Market

• Between Q4 2010 and Q1 2011, the South West saw the biggest percentage point fall in employment rate (74.0% to 73.4%).  Despite this, only the South East and East have higher employment rates.  The SW unemployment rate rose from 6.2% to 6.6% - the highest percentage point rise nationally, yet the rate remains below the UK average (7.7%).

• In the year to December 2010, the South West had the highest female self-employment rate of any part of the UK (6.8%, UK 5.3%), a slight rise from the year to September 2010 (6.7%. UK 5.2 %).  This meant overall SW self-employment rates rose slightly in the year to December 2010 (10.5% up from 10.4%), despite a static male self-employment rate (14.2%). 

• The SW claimant rate fell between April and May 2011 (2.6% to 2.5%, UK 3.8% to 3.7%), to the joint lowest claimant rate in the UK (with the South East).  The number of long term claimants in the South West has fallen month on month since February 2011, but falling total claimants mean that the long term claimant rates have fluctuated.

• The SW income support claimant rate has fallen quarter on quarter since Q1 2009 and currently stands at 3.7% (GB 4.6%) – though this includes some movement to Job Seekers Allowance due to changes in the benefit system. 

Housing Market  

• Average SW house prices fell from £235,086 in Q4 2010 to £232,054 in Q1 2011 (a fall of 1.3%).  Nationally, average house prices rose from £245,880 to £247,120 (0.5%).