Business leaders in Coventry and Warwickshire say uncertainty will continue for the rest of the year after a small rise in economic growth in July.
GDP – the measure of economic output – rose by 0.2 per cent in July after a 0.6 per cent fall in June.
Corin Crane, Chief Executive of the Coventry and Warwickshire Chamber of Commerce, said: “The UK economy was expected to grow in July but the monthly fluctuations look likely to continue due to the uncertainty that remains.
“Businesses are having to respond to a variety of issues on a day-to-day basis and that is making it harder for them to plan for and deliver growth.
“The cost of doing business has risen dramatically and there are still problems around recruitment.
“We’re encouraging businesses to make sure they get in touch with the Coventry and Warwickshire Chamber of Commerce if they are in need of support during this time.
“Of course, last week’s announcement regarding energy bills was welcome and will have brought businesses some short-term relief but it’s vitally important that we start to see a long-term plan for the economy come forward.”
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: “Today’s estimated rise in monthly GDP for July 2022 by 0.2 per cent shows that growth continues to fluctuate considerably on a month-by-month basis.
“The main driver of growth is the services sector following a fall in the previous month. However, the production and construction sectors have both seen a second consecutive fall in growth.
“The UK economy faces serious immediate and longer-term structural issues which could lead to quarterly recession by the end of 2022, and anaemic yearly growth after that.
“BCC’s research shows that business confidence is trending downwards, with inflation wiping out turnover and profitability for many firms and a record proportion facing recruitment difficulties.
“Last week’s announcement on support for firms’ energy bills will have provided some reassurance to business and should dampen one of the key sources of inflation, but further details of the scheme are needed to restore long-term confidence.
“The Bank of England face a delicate balancing act on monetary policy and while inflation is the dominant issue, further rate raises could compound the economy’s move towards recession.
“Crucially, while the war in Ukraine continues, we are unlikely to see a stabilisation in gas prices, and the economic outlook will remain challenging.”