Blue skies remain on the horizon as the economic storm continues in July 2011

New Economy has released the July 2011 edition of the Manchester Monitor, which provides an analytical snapshot of the economic wellbeing of Greater Manchester.

This month’s analysis by New Economy – whose purpose is to create economic growth and prosperity for Manchester – highlights that strong population growth makes the city well-placed for long-term growth, but warns that medium-term uncertainty still remains.

Figures released by the Office for National Statistics this month show that Greater Manchester has been the key driver of population growth in the North West. Between 2009 and 2010 it accounted for three quarters of the total increase experienced across the region. A growing population is a fundamental building block that will support economic growth in the future. It shows Manchester’s return to economic strength, reversing the shrinking population seen in the 1980s and early 1990s as the economy suffered from the effects of industrial decline.

Greater Manchester experienced population growth of 37,800 between 2009 and 2010. The total population for Greater Manchester now stands at 2.63 million. All districts in Greater Manchester experienced growth, with Manchester local authority experiencing the largest increase of 15,000 (+3.1%).

There was further positive economic news with hotel occupancy rates rising in May 2011. The latest figures indicate that average monthly hotel occupancy was 76% in May – a year-on-year rise of 3%.

Manchester Airport experienced a boost with the Easter holidays this year. The latest figures from April show that 1.4 million passengers passed through its doors. This is a significant annual increase of more than 352,000 passengers – a 32.6% rise on passenger numbers from April 2010.

Despite the positive signs however, July’s Manchester Monitor still outlines uncertainty in the region’s economic climate. In particular, long-term unemployment has accelerated over the month with long-term claimant numbers in Greater Manchester reaching 26,400, a rise of more than 5.7%.

Footfall in the city centre also continues to decline with a negative annual change of -11.6%.

Baron Frankal, director of Economic Strategy at New Economy said: “There are some positive signs in July’s Manchester Monitor with Greater Manchester acting as the key driver of population growth in the North West and passenger numbers at Manchester Airport increasing substantially. However, rising costs and inflation is maintaining a level of caution when it comes to both consumer and business expenditure.

“There is also a sharp rise in long-term unemployment which of course, can only be offset by increasing the number of job vacancies. Fortunately, Greater Manchester does have a number of projects that can help with a potential recovery such as the Sharp Project which officially launched last week, and MediaCityUK now gaining momentum.”

ENDS

Notes to Editors
For further information please contact Mark Coleman, Communications Manager, Marketing Manchester on 0161 238 4586. Email: Mark Coleman

New Economy’s purpose is to create economic growth and prosperity for the people of Greater Manchester. We are committed to working with our partners to lead, influence and innovate; creating a better economy. From strategy to research, project management and consultancy, everything we do has one aim in mind. To make Greater Manchester a better place to live and work

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