A leading business organisation in Coventry and Warwickshire says August’s drop in economic activity is the latest warning sign for Government.
GDP – the measure of economic output – fell in August by 0.3 per cent after a slight rise in July.
Corin Crane, Chief Executive of the Coventry and Warwickshire Chamber of Commerce, said businesses across the region were battling against a range of factors that are holding back their ability to grow.
He said: “There have been lots of warning signs in the past few months and the GDP figures for August are the latest.
“I’ve been listening to businesses across Coventry and Warwickshire a great deal since taking up this post in the summer and they are facing so many different issues, including recruitment, rising costs, rising interest rates and confidence generally.
“When you put all that together, it is incredible to see the resilience of businesses across the region and we, as a Chamber, are here to support them through this period.
“The Government support on energy costs was welcome but it’s vitally important now that it balances that help with a plan that can help to provide confidence to the markets and bring about greater stability here in the UK.”
David Bharier, Head of Research at the British Chambers of Commerce, said: “The 0.3 per cent fall in monthly GDP for August 2022 is a warning sign that the economy was already stalling before the market turmoil of recent weeks.
“Our research indicates that business confidence is falling at an alarming rate. Volatility in the currency and bond markets following recent Government announcements will have only exacerbated this.
“The six months energy support package will have provided some breathing room for businesses facing eye-watering energy costs.
“To build business confidence, Government must rapidly provide more detail on its fiscal policies and supply side reforms, particularly at a time when businesses face the twin crises of rising interest rates and high inflation.”