Economic outlook for Coventry and Warwickshire sees slight drop ahead of Budget

Coventry and Warwickshire Chamber of Commerce's latest quarterly economic survey (QES) has shown a slight drop in the economic outlook for the region.

The survey looks at firms in both the manufacturing and service sectors and gives scores out of 100. Anything above 50 indicates growth, while below is negative.

As well as rating confidence it asks questions around intentions to recruit, investment plans and sales, domestically and overseas.

Corin Crane, chief executive of the Chamber, said: "Our QES is the strongest barometer of how businesses in the region are performing right now and, also, how they feel about the months ahead.

"We use this information, as well as the day-to-day conversations we have with businesses, to let decision-makers at a local, regional and national level know what sentiment is like and what issues firms are facing.

"The survey reflects that there has been a little bit of uncertainty around the General Election and then the Budget but there is still a strong degree of confidence as we move toward the end of the year. So, it will be a case of all eyes on the Budget to see what the Chancellor can do to help get the economy moving."

Overall, the survey saw the economic outlook drop from 62.4 to 60.2 for the region, but that still suggests business growth over the next 12 months.

Confidence in the service sector scored 73.5 - down from 77.1 in the previous survey. In manufacturing, confidence fell from 80.5 to 67.0.

Despite the drop, both scores were still well into positive territory.

Service sector businesses reported a slight increase in domestic and overseas sales as well as in investment intentions and cashflow.

The manufacturing sector saw a drop in all of those measures but were still all above the crucial 50 mark.

In both sectors, recruitment intentions were still positive but had fallen compared to the second quarter.

The survey, which is delivered in partnership with Prime Accountants Group, is analysed by the economy and skills group at Warwickshire County Council.

Steve Harcourt, director of Prime Accountants Group, said: "It’s pleasing to see that the business outlook for the region is positive.

"The economy and our businesses have shown incredible resilience over the past few years and would have liked to have grown even more quickly but have faced a series of obstacles."

Todd Williams, business intelligence analyst (economy and skills) at Warwickshire County Council, added: "Local concerns around labour costs remain significant for both the services and manufacturing sectors, along with ongoing recruitment challenges.

"Nevertheless, local responses for overall business confidence, turnover, cashflow, profitability and investment in training - are all very positive."