Corin Crane, the chief executive of the Coventry and Warwickshire Chamber of Commerce, said the fresh statistics are positive – but that companies in the region are facing barriers to growth from a range of angles.
He said: “Of course, we are pleased to see the economy growing and the February numbers are beyond what many were expecting – so that has to be positive news.
“The numbers can also help to enhance confidence among businesses and make them feel that better times are ahead, encouraging them to invest in growth.
“However, I am speaking to companies of all sizes and sectors across the region and they are facing uncertainty from a whole host of different sources – from the rising costs of employment through to the ever-changing scenario around tariffs from the USA.
“It’s worth remembering that despite a 90-day reprieve for most of the world on tariffs -nothing has changed for the UK, and we have a 10 per cent tariff on all goods and 25 per cent on our automotive sector. Given the nature of our local economy, this will start to have a negative impact very quickly.
“Therefore, the Government has to do everything in its power to provide stability and as much certainty as possible when it comes to its decision making in the coming weeks and months.”
Stuart Morrison, Research Manager at the British Chambers of Commerce said: “The stronger than expected GDP rebound in February, and positive data for the three months, are welcome news. There was an encouraging story from both the services and manufacturing sectors.
“However, businesses across the UK are under no illusion – significant sustained growth continues to remain elusive.
“Events of recent weeks will have substantially changed the growth picture going forward. Businesses are now facing the double-edged sword of rising domestic costs, including the national insurance rise, and growing global trade uncertainty. However, it will be several months before we see the real impact on economic data.
In the search for growth, much will hinge on the upcoming industrial strategy. We also need to see urgent action by ministers on business rate reform, infrastructure and export support. Government should be doing all it can to help business navigate the choppy waters both at home and abroad.”
