Greater Manchester’s economic boom has not increased household incomes across outer boroughs, with earnings remaining stagnant despite regional growth, according to new Oxford Economics research

Greater Manchester’s relative economic success has failed to translate into improved wages or earnings for residents in its outer boroughs, according to a new report.

Research by Oxford Economics has indicated that “exceptional economic growth” has not resulted in higher earnings or income growth across the wider region.

Economists noted that elevated levels of economic inactivity and stagnant productivity gains in areas beyond Manchester city centre have constrained household finances.

The report scrutinises the broader narrative unfolding ahead of Andy Burnham’s anticipated move into Number 10, with the former Greater Manchester mayor having claimed credit for the growth achievements recorded in recent years.

He has also leveraged strong growth figures to bolster his calls for greater devolution, while pledging “good growth in every postcode”, as reported by City AM.

Although average disposable income growth in the city has outstripped the national average by approximately 0.6 percentage points between 2008 and 2025, growth in Greater Manchester boroughs Salford and Bolton has trailed 0.7 percentage points behind the country’s benchmark rates.

Bury, Oldham and Wigan have similarly struggled to match the growth witnessed in areas such as Manchester, Trafford and Tameside.

Economists highlighted that these areas have been disproportionately impacted by a significant surge in economic inactivity among working-age residents, with long-term sickness rising by nearly 25 per cent across the entire city region.

The report also indicated that poor transport links and a “relatively small” labour market have prevented Manchester’s growth from filtering through to surrounding areas across the region.

The report noted that sluggish income growth beyond the city centre suggests urban areas “remain too weak, too small, and too poorly connected to spread. growth across the entire region”.

Economists at Oxford Economics also raised questions over the city’s productivity growth, which “has been weak by historical standards”.

While the city benefited from an average annual productivity growth of 2.1 per cent between 1991 and 2007, that figure has since fallen to an average of 1.2 per cent per year following the financial crisis — though this still outpaced levels recorded across the UK and in London.

A separate paper by the consultancy also cast doubt on the data underpinning Manchester’s growth figures, given that the Office for National Statistics has encountered difficulties in publishing reliable labour market statistics.

In contrast, the Centre for Cities, a think tank favoured by Burnham, argued that Manchester’s city centre has strengthened thanks to a sharper focus on buses through the privately operated Bee Network bus and tram services.

It described the new transport frameworks as a “devolution success story”. The report also noted that wages across the city exceeded the national average, though unemployment levels between 2024 and 2025 were equally higher than the UK’s overall rate.

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The British Business Bank has published its latest annual Small Business Equity Tacker

Wales has experienced the biggest percentage fall in equity deals in the UK while their combined value have increased marginally, show new research from the British Business Bank.

According to its Small Business Equity Tracker 2026 the value of equity investments in Wales last increased 1% on 2024 to £152m.

One deal, the £107m raised by Cardiff University life sciences spinout Draig Therapeutics accounted, for 70% of the total. The research from the UK Government’s economic development bank also shows that Wales and parts of the north of England under-performed on their share of university spinouts.

While Wales accounted for 7% of incorporated spinouts, only 3% of those receiving investment. Wales experienced the biggest percentage fall of equity deals of any UK nation or region, down 45% to 44. Only Northern Ireland had fewer deals with 35.

For the UK as a whole deals were down 17% to 2,002 with their total value down 4% to £12.28bn. On value Wales made up just over 1% of the UK total and on number of deals 2.2%

Across the UK, equity markets remained challenging in 2025 with investors increasingly concentrating capital into fewer, larger transactions. London’s dominance continued to ease as investment fell, while Scotland, the South West and the North West all recorded strong growth in investment value.

Across the UK, AI companies accounted for a record 44% of smaller business equity investment in 2025 and 26% of all deals, with investment increasing by 48% year-on-year to £5.4bn across 527 deals.

In Wales, AI businesses raised £5.6m across eight deals in 2025, accounting for 18% of all equity deals. While investment activity remains at an earlier stage than in some parts of the UK, AI continues to represent an important area of innovation, with Welsh businesses increasingly attracting backing to develop new technologies.

Recent examples supported by the British Business Bank’s £130m Investment Fund for Wales – whose equity element is fund managed by Foresight – include Cardiff-based automation company Bots for That, which secured a £1.5m equity investment to support growth of its AI-powered software platform, and Cardiff University spinout Nisien.AI, which received backing to accelerate research and development, expand its workforce and bring new products to market.

Jessica Phillips-Harris, director, Wales, British Business Bank local growth team, said: “Equity investment in Wales was resilient in the face of a challenging year in 2025, demonstrating that investors continue to back ambitious Welsh businesses with strong growth potential.

“Artificial intelligence is becoming an increasingly important driver of investment activity across the UK, and Wales is benefitting through innovative businesses developing new technologies and attracting investor interest. At the same time, strong investment into sectors such as life sciences demonstrates the breadth of innovation taking place across Wales.”

Tamilnad Mercantile Bank witnessed a sharp uptick in its share price on Thursday, rising 4.52% to Rs 763.30, following the release of its provisional business update for the June 2026 quarter (Q1FY27). The stock’s momentum was supported by robust year-on-year growth across key banking metrics, reinforcing investor confidence in the lender’s steady expansion trajectory.

The bank reported total business of Rs 1,21,715 crore as of June 30, 2026, marking a strong 23.04% increase from Rs 98,923 crore in the same period last year. On a sequential basis, total business also advanced 5.76% from Rs 1,15,091 crore in the March 2026 quarter, indicating sustained operational momentum.

Growth was particularly strong in the advances segment, which stood out as a key driver. Gross advances surged to Rs 57,306 crore, up 27.01% year-on-year from Rs 45,120 crore. Sequentially, advances rose 7.36% from Rs 53,379 crore, reflecting healthy credit demand and continued expansion in lending activity.

On the liability side, deposits climbed to Rs 64,409 crore, compared to Rs 53,803 crore a year earlier, registering a 19.71% YoY growth. Deposits also rose 4.37% quarter-on-quarter from Rs 61,712 crore, indicating stable inflows and consistent customer confidence.

The bank’s CASA (Current Account and Savings Account) deposits showed a divergent short-term trend. CASA balances increased 16.94% year-on-year to Rs 16,852 crore, but declined 2.95% sequentially from Rs 17,365 crore in the previous quarter. This suggests a mild shift in deposit mix in the near term, despite strong annual growth in low-cost funds.

Over the past year, the stock has delivered a remarkable rally of around 65%, with the current market capitalisation standing at approximately Rs 11,582 crore. Its 52-week high stands at Rs 763.
From a technical standpoint, the 14-day RSI stands at 46.9, indicating neutral momentum, while the stock trades above 6 out of 8 key simple moving averages (SMAs), suggesting an overall bullish undertone in trend structure.In the March 2026 quarter, institutional interest in the stock improved, with Foreign Portfolio Investors (FPIs) increasing their holding from 4.95% to 6.19%. Mutual funds also began building or expanding positions, raising their stake from nil to 0.35%, indicating a gradual rise in institutional participation and confidence in the stock.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

A World Cup jobs boom in the US has failed to materialise, with employment in restaurants, bars and hotels falling in June.

Analysts had expected the tournament, being hosted jointly by the US, Canada and Mexico, to lead to an increase in leisure and hospitality jobs.

But the sector saw a decline of 61,000 jobs last month, the Bureau of Labor Statistics (BLS) said on Thursday.

Overall employment in the US rose by 57,000 in June, which was lower than expected, while the unemployment rate dipped slightly to 4.2%.

The BLS’s previous release reported early signs of a jobs boom in May, with bars and restaurants ramping up hiring to prepare for the World Cup.

And a report by Goldman Sachs analysts expected June’s figures to show the competition boosting employment by around 40,000 jobs.

But, despite reports of travelling football fans drinking bars across the US dry, the growth went into reverse in June.

ING’s chief US economist James Knightley said leisure and hospitality was a “real area of weakness” in Thursday’s figures.

He added that the decline was “a major surprise given the World Cup is on and bars and venues are busy”.

“Admittedly, this sector had seen a 44,000 jump in May, but even so that is a surprising outcome,” he told the BBC.

Thursday’s jobs report included significant downward revisions to increases reported in previous months, with the number of jobs created in April and May now 74,000 lower than the BLS thought.

Knightley said June’s lower-than-expected overall increase, combined with the downward revisions, suggest “the decent uptick in jobs over the previous three months is not necessarily the start of a new trend”.

He added the figures make an interest rate hike later this month less likely.

Susannah Streeter, chief investment strategist at Wealth Club, said the slowdown in jobs growth opens the door to a “Goldilocks scenario” for the US economy, in which it could stay “not too hot, but not too cold”.

“Expectations of multiple rate hikes are fading away, with only one hike now fully priced in, and not until next year,” she added.

Is your holiday booked yet?

Finance expert Laura Pomfret shares her top tips for finding cheaper flights, from spotting rare error fares to knowing the best time to book. Plus, why airline bundles aren’t always the bargain they seem.

To watch this with subtitles go to BBC iPlayer and search for Morning Live from 02/07/2026