Private sector grows faster than expected in August
Plus, Volvo abandons plan to sell only EVs by 2030, Amazon's Alexa to get a revamp and the world’s call centre capital is gripped by AI fever – and fear
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Business Agenda
A summary of the most important business news
1. The private sector economy expanded more quickly than expected last month, but businesses have expressed concerns about possible tax rises in Rachel Reeves’s first budget. The final S&P Global composite purchasing managers’ index rose to 53.8 in August from 52.8 in July, well above analysts’ expectations for an increase to 53.4. The figure, a four-month high, was above the 50-point threshold that separates growth from contraction. You can read more here.
2. The US, EU and UK are set to sign the first international treaty on the use of AI that is legally binding, as companies worry that a patchwork of national regulations could hinder innovation. The convention requires signatories to be accountable for any harmful and discriminatory outcomes of AI systems. It also requires that outputs of such systems respect equality and privacy rights and that victims of AI-related rights violations have legal recourse. You can read more here.
3. Barratt Developments has suffered a 75 per cent drop in annual profit and a double-digit decline in home completions after a “challenging” year for Britain’s biggest housebuilder. The company said the past year had proved tough for the housebuilding industry and potential buyers, as cost of living pressures, much higher mortgage rates and weak consumer confidence weighed on the housing market. You can read more here.
4. Price cuts and the clearing out of existing stock ahead of the September registration plate change have helped electric cars to their best performance in 20 months, according to data from the Society of Motor Manufacturers and Traders. The number of new cars sold in August fell 1.3 per cent to 84,500, but the number of electric cars sold rose 10.8 per cent to 19,100, representing 22.6 per cent of all new registrations in the month. You can read more here.
5. But it’s not all good news for EVs. Volvo has abandoned its target to produce only fully electric cars by 2030, saying it now expects to be selling some hybrid vehicles by that date. The carmaker blamed changing market conditions for its decision to give up a target it had announced only three years ago. It joins other major carmakers General Motors and Ford in rowing back on EV ambitions. You can read more here.
Business Question
What percentage of UK HR leaders had either undertaken or are considering layoffs in 2024?
A. 72 per cent
B. 62 per cent
C. 51 per cent
D. 40 per cent
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
By Dougal Shaw
⚙️ Ask Claude: Amazon turns to Anthropic’s AI for Alexa revamp
Amazon is doing a reboot of its popular Alexa voice assistant, with the help of Anthropic’s Claude AI model. It promises a more sophisticated service, but Amazon wants people to pay for this new AI-enhanced Alexa. Even if it’s a better experience, will it help Amazon’s bottom line?
📞 The world’s call centre capital is gripped by AI fever – and fear
Staying with AI, it’s long been conjectured that the technology will lead to job cuts, as computers take charge of human roles. Customer call centre work has been highlighted as an area where this could happen. The Philippines is famous for being a place where call-centre work can be outsourced cheaply. Well, it’s feeling the AI effect already, apparently, though the country has some counter-measures.
🤫 The rise of the ‘hushed hybrid’ workplace
According to a recent survey, the idea of the ‘hushed hybrid’ workplace is on the rise. This is when the official company policy is for staff to work in the office in person, but line managers allow many to work from home in practice, in an informal arrangement. Ring true?
Business Quote
Inspiration from leaders
“Even if you’re on the right track, you’ll get run over if you just sit there.”
– Will Rogers
Business Leader
The best of our content
Is it better to build your start-up in-person, or remotely?
The pandemic shifted the way businesses think about remote work, but for start-up founders, the decision between a physical office and a fully remote setup goes beyond convenience.
It’s about defining their company culture while competing for survival. We explore how two sets of start-ups—one group embracing in-office collaboration and another opting for remote flexibility—navigate the challenges and benefits of each approach.
You can read more here.
Other popular pieces
⚽ Adaptability over ideology: How Carlo Ancelotti has redefined leadership
💥 Disrupting the disruptors: Lessons from 5 businesses that failed to adapt to change
💪 ‘Immortalists’: The companies behind anti-ageing
And finally…
Do you parkrun? If you don’t know what that means, it is a weekly, free five kilometre run in public parks which takes place around the UK every Saturday morning.
The runs are staffed by volunteers and they are timed – though it’s not designed as a race.
More than 3 million people have completed these runs and more than 1,200 events run each week around the UK.
It’s rapidly becoming not only a UK cultural institution but arguably one of the greatest public health interventions of modern times!
The ‘movement’ celebrates its 20th anniversary next month. It all began in Bushy Park in south London, where the first event was staged. This venue has just held its 1,000th event and 6,000 runners turned up to celebrate. Pity the timekeepers!
Have a look at the amazing turnout in this video.
The answer to today’s Business Question is C. 51 per cent.
