CONFIDENCE in the economic outlook for Coventry and Warwickshire has taken a tumble, according to a new survey of businesses in the region.
Coventry and Warwickshire Chamber of Commerce’s latest Quarterly Economic Survey (QES) showed positivity was on the wane compared to the previous quarter.
Using the responses of businesses across the services and manufacturing sector, the survey gives scores out of 100 where anything above 50 is positive and below is negative.
The overall economic outlook was down to 50.6 compared to 55.3 in the previous quarter due to falls in domestic sales.
The reduction was attributed to falls in domestic sales, and investment and cashflow.
An increase in export sales was cause for some cheer, particularly in manufacturing where it rose to 57.7 from 48.5.
On the employment side, the service sector was down from 56.4 to 51.6, and in manufacturing it dropped from 65.9 to 54.4 – meaning a slightly less positive picture regarding recruitment intentions.
Of companies looking to recruit, 84 per cent in the service sector said they had experienced difficulties, with 80 per cent of manufacturers backed up that assessment.
Confidence among businesses was still relatively strong across the region, sitting at 58.0 in the service sector and 60.3 in manufacturing.
Corin Crane, Chief Executive of Coventry and Warwickshire Chamber of Commerce, said: “The regional economy is finely balanced – still in positive territory, but only just. We know there are strong ambitions to grow but, with interest rates rising, inflation stubbornly high and a recruitment crunch, it is tough.
“Across the region, businesses continue to show incredible resilience in the face of some of the most difficult challenges our economy has faced in decades.
“We’d urge businesses in need of support to get in touch with the team at the Chamber to help them to grow and continue the amazing work they are doing.”
The survey is delivered in partnership with Prime Accountants Group.
Steve Harcourt of Prime Accountants Group said: “Trading conditions remain tough but there is still an appetite to grow among many companies right across the region and it is vitally important that we nurture that in order to continue growing the economy.”
Todd Williams, Insight Analyst (Economy & Skills) at Warwickshire County Council, said: “The latest QES results show the local economy maintaining optimism despite the ongoing economic adversity.
“The overall economic outlook for the region contrasts the national trend, with local manufacturing businesses remaining optimistic versus a national pessimism, while local service businesses are less optimistic than the national average.
“While there are local short-term concerns, especially cash flow for manufacturing businesses and ongoing pessimism for exporting services, both the local manufacturing and service sectors show confidence that business is expected to improve over the next 12 months.”
