Business leaders in Coventry and Warwickshire have warned the Government against being ‘lulled into a false sense of security’ after the economy grew slightly in November.
The Office for National Statistics revealed that during November, gross domestic product (GDP) – the measure of economic output – grew month-on-month by just 0.1% compared to growth of 0.5% in October.
Corin Crane, the chief executive of the Coventry and Warwickshire Chamber of Commerce, said firms across the region are still facing a range of issues that are holding back growth.
Corin said: “There is a danger here that consecutive months of growth in GDP gives Government a false sense of security that the economy is starting to turn around, and that support can start to be scaled back – as we have recently seen with the Energy Bill Discount Scheme.
“November is traditionally a very busy month as consumers start to get ready for Christmas – not to mention that the FIFA World Cup was also being staged – so it was alarming to see that GDP growth fell when compared to October.
“These sorts of anomalies should serve as a sobering reminder that while businesses are having to tackle rising costs, they are also facing skills shortages, increasing interest rates and eye-watering inflation.
“I’d encourage companies across the patch to get in touch with our team at the Chamber who can help them with the issues they are facing but also look at ways they can grow their customer-base too.”
David Bharier, Head of Research at the British Chambers of Commerce, added: “Today's GDP figures for November provide further evidence that UK economic growth is heading in the wrong direction, despite this period normally being among the busiest for the retail sector.
“While month-on-month GDP stood at 0.1%, this is a volatile measure. The three-month average, standing at –0.3%, sends a clearer signal of the current trajectory of the economy.
“Unprecedented energy costs, new trade barriers with the EU, and lasting damage caused by Covid lockdowns have created the hardest trading conditions for small businesses in recent history.
“Our latest Quarterly Economic Forecast expects five consecutive quarters of recession lasting until the end of 2023, and our most recent business survey points to significant falls in longer-term business confidence.
“To get back to growth in the long-term, firms will need to see the removal of trade barriers, particularly with the EU, investment in public infrastructure, and measures to improve their access to appropriately skilled staff.”