Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “While there have been mild signs that the economy is starting a longer-term recovery, July’s contraction is an important reminder to business owners that they should not rely on this recovery alone to help boost their own trade.

“Seeing the economy grow over the last three months is really encouraging despite the various barriers to growth facing businesses such as rising interest rates, inflation and recruitment, and overseas trade – so while one would be forgiven for feeling optimistic, caution needs to be added to this.

“As a Chamber, we are continuing to seek support from government to help businesses overcome these growth barriers, while also working with SMEs to help them diversify, so they can not only survive in an uncertain economic backdrop, but thrive too.

“That’s why it is incredibly important for business leaders to ensure they have the right support network around them, to ensure they are maximising opportunities for growth.”

David Bharier, Head of Research at the British Chambers of Commerce, added: “Today’s figures showing GDP grew by 0.2% in the three months to July, with a 0.5% decline in July itself underlines the precarious state of the economy. Small and medium-sized businesses continue to battle against stubbornly high inflation, rising interest rates, trade barriers with the EU, higher taxes, and an uncertain labour market. 

“Our latest Quarterly Economic Forecast, published last week, expects GDP to flatline over the next two quarters, leading to 0.4% growth for this year. Longer term growth is also expected to be less than 1% for 2024 and 2025.  

“Businesses need to see a clear framework from politicians, outlining how long-term investment can be unlocked, and economic growth accelerated.” 

Pictured: Corin Crane