Economy of Manchester

The economy of Manchester is among the largest in England. Manchester is a city and metropolitan borough of Greater Manchester. It lies within the United Kingdom's second-most populous urban area, with a population of 2.55 million. Manchester's commercial centre is in Manchester city centre, focused on Spinningfields, Mosley Street, Deansgate, King Street and Piccadilly Gardens.

Historically, the world's first industrialised city,
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• the region was once in economic and population decline. In 2012 Greater Manchester South, which includes the cities of Manchester and Salford and three other metropolitan boroughs, was the largest NUTS3 area outside London in economic terms, and growth was 3.8% vs the Core Cities average of 2%. Between 2002 and 2012 Greater Manchester South grew 45% vs. national growth of 44%. Meanwhile, the 2011 census also showed that Manchester was the fastest growing city in the UK in terms of population. Manchester is also a city of contrast, where some of the UK's most deprived and most affluent neighbourhoods can be found. According to the 2010 Indices of Multiple Deprivation Manchester is the 4th most deprived local authority in England.https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6884/1871689.xls On the other hand, Greater Manchester is home to more multi-millionaires than anywhere outside London, with the City of Manchester taking up most of the tally. In 2013 Manchester was ranked 6th in the UK for quality of life, according to a rating of the UK's 12 largest cities.https://www.telegraph.co.uk/news/uknews/10386993/Bristol-is-best-city-to-live-in-the-UK.html , Opinium Research LLP on behalf of MoneySupermarket

Manchester is considered to be a 'beta -' global city, rated as the second most globally influential city in the UK after London with Edinburgh third, Belfast fourth and Glasgow fifth. The region is now an economic knowledge-led centre, with research and enterprise clustered around the University of Manchester, where research ranked as the third most powerful in the UK behind Cambridge and Oxford. Typical industry areas include: digital and creative, financial, legal and business services, biotechnology, advanced manufacturing, environmental technologies, tourism, global sports brands, media and real estate. The city is also a key location for many foreign owned companies and headquarters, and almost half of the Northwest's Top 500 businesses.http://www.manchester.gov.uk/info/200079/regeneration/2482/manchester_a_great_city_to_do_business , Manchester.gov.uk. Manchester City Council also plays a uniquely active role in business, where it owns key infrastructures such as a 35.5% stake in Manchester Airports Group, which owns other UK airports such as London Stansted Airport, and is the owner of the City of Manchester Stadium, home to one of the world's highest earning football clubs.

Economic indices

Below is a collection of economic indices featuring Manchester. It is important to remember that while useful, surveys and indicators have limitations, and are at times subjective and incomplete. For example, no complete list of factors affecting quality of life can be created, and the way people weight these factors differs.

Quality of Life

* 6th in the UK for quality of life, according to a rating of the UK's 12 largest cities. The cities were assessed on a range of factors including property market activity, rental costs, salary levels, disposable income growth, cost of living, unemployment rates and life satisfaction.
*51st best city in the world to live in according to the Economist Intelligence Unit in 2012, in a study which looks at crime levels, education, health care, culture and infrastructure. The survey only included two British cities (London and Manchester), and Manchester's decline of 9 places since the previous year follows the 2011 England Riots, and was greater than any of the 140 other cities worldwide except Damascus, which descended into civil war in 2011. Also ranked ahead of London in 2011, it was said the city ranks slightly ahead because it had better healthcare, whilst it was also considered to be a more "stable" city in terms of crime and terrorism.
*Europe's most affordable city featured, according to KPMG's Competitive Alternative 2012 report, ranking slightly better than Dutch cities, Rotterdam and Amsterdam, who all have a cost of living index less than 95.
*4th most deprived Local Authority in England according to the 2010 Indices of Deprivation, which takes into account: income; employment; health and disability; education, skills and training; barriers to housing and services; crime; and living environment. There has been improvement since 2007; the number of Lower Super Output Areas in Manchester considered most deprived fell by 13%.
*7th most congested city in Europe, 2nd in the UK after London, according to NAVTEQ's report on Europe's most congested cities.
*4th most bike-friendly big city in the UK in 2010, after Bristol, Nottingham and Leicester.
*5th best sports city in the world (2012) after London, Melbourne, Sydney and New York City according to a SportBusiness Group Ultimate Sports Cities report. The reported noted that New York and Manchester enjoy the benefits of worldwide sports club brands and their social legacy, especially in the case of Manchester. Manchester has been shortlisted amongst 30 other cities for the 2014 top cities ranking.

Business

*9th lowest tax cost of any industrialised city in the world in 2012 according to KPMG's Competitive Alternative report, where the report noted the city was a notable improver in competitiveness compared with other European cities, with currency depreciation, taxation reductions and decreased industrial facilities costs highlighted as factors.
*Along with London, Manchester featured in the top 30 cities in the world for investment, and of the top 30, Manchester was 12th for the highest proportion of urban economy derived from financial and business services.
*Manchester has also overtaken Stuttgart and Tokyo to rank 24th in the world, 2nd in the UK after London, in the global innovation cities league tables, according to the most recent 2thinknow Consulting report on Innovation Cities.

GVA

The Office for National Statistics does not produce GVA data for the City of Manchester alone, instead the sub-region of Greater Manchester (GM) is divided into two groups of authorities to form NUTS 3 areas for statistical purposes:


Greater Manchester South (Manchester, Salford, Stockport, Tameside, Trafford)


Greater Manchester North (Bolton, Bury, Oldham, Rochdale, Wigan)

Manchester can only be analysed alongside neighbouring metropolitan boroughs within GM South, which tend to have high levels of economic coherence nevertheless; for example, Salford Central railway station is less than 150 meters (170 yards) away from the boundary of Manchester city centre whilst Salford itself has no identifiable city centre.

In 2012, Greater Manchester South's GVA was £34.8bn ($61.5bn), accounting for 68.2% of the GVA of the Greater Manchester, 26.6% of the GVA of the North West and 2.5% of the GVA of the UK.
Compared with other NUTS 3 areas in the UK, the economy of Greater Manchester South is exceeded only by London (comprising five NUTS 3 areas - £309.3bn), and annual GVA growth was 3.8% vs. the Core Cities average of 2%.

''excluding Manchester, included Newcastle, Liverpool, Sheffield, Leeds, Nottingham, Bristol and Birmingham''

Productivity

GVA per employee in Greater Manchester South is estimated to be £46,500 in 2012. Compared with other NUTS 3 city areas in the UK, Greater Manchester South ranks 4th, behind London (£75,100), Edinburgh (£54,100) and Leeds (£46,900).

''excluding Manchester, included Newcastle, Liverpool, Sheffield, Leeds, Nottingham, Bristol and Birmingham''

GVA by sector

GDP

According to the 2012 Eurostat figures, GDP per capita (in euros) of Greater Manchester is = €27,500 just ahead the West-Midlands with €26,600 but only half the GDP per capita of Dublin €56,671, London with €54,200 or Paris with €60,100.

Greater Manchester has a total GDP of 62 billion, West Midlands has a total GDP of 122 billion but less than the €103.000 bn in Greater Dublin, $690.000 bn in Greater London and $882.000 bn for the Paris region.

Employment, Welfare and Education

The mid-year estimate for the population of Manchester was 510,800 in 2012 and population growth on the previous year was 1.56%, the second highest of the Core Cities after Nottingham., Population change in core cities, Manchester.gov.uk. An estimated 6,402,684 people lived within 30 miles of Manchester, and 11,472,603 within 50 miles. The 2011 Census also showed that between 2001 and 2011, the population of Manchester grew 19%, making it the fastest growing area in the UK outside London. Whilst the population of Manchester grew more than both Birmingham and Liverpool combined, there has also been a reversal of the traditional brain drain to the South, where some 1,600 people moved from London to Manchester in 2010.

Employment

''It would appear that Manchester has a high rate of economic inactivity, however Manchester has an above average student population size, where 39.5% of those economically inactive are students vs. the British average of 25.4%.''

Earnings

Median earnings in pounds for employees living in the area.

Median earnings in pounds for employees working in area.

Education

Business activity

As the UK economy continues to recover from the downturn experienced in 2008-10, Manchester compares favourably to other geographies. It is shown the strongest annual growth in business stock (of 5%) of all the Core Cities. The city experienced a relatively sharp increase in the number of business deaths, the largest increase of all the Core Cities, however this was offset by strong growth in new businesses which resulted in a strong net growth.

Headquarters

Manchester is a major headquarters location, with a growing number of global, European and national headquarter offices. International property experts Cushman & Wakefield have ranked Manchester as the best city to locate a new headquarters operation largely down to ease of access to a pool of knowledge and global connectivity. Companies with global headquarters in Manchester include Umbro, PZ Cussons, and The Co-Operative Group. Manchester is also the European headquarters for companies like Brother and UAE firm Etihad Airways. Kellogg's, Adidas, Siemens and Totesport are amongst hundreds of firms with national headquarters in Manchester.http://www.investinmanchester.com/why-manchester/business-activities/headquarters/ , Invest in Manchester. Well Pharmacy is based in Central Manchester and the largest pharmaceutical company based in the North of England.

Manchester's ability to host major headquarter offices has been recently proven by the action taken by the BBC
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