Businesses in Coventry and Warwickshire are set for sustained growth, according to a leading economist.
Barry Naisbitt, chief economist of Santander, who will be speaking at the Coventry and Warwickshire Chamber of Commerce’s annual conference at Stoneleigh Park on October 4, said local businesses are at their most optimistic outlook for three years.
That backs up the Chamber’s recent Quarterly Economic Survey which showed rising optimism among firms in both manufacturing and the service sectors.
Naisbitt said: “There has been a notable change in the performance of the UK economy and the good news is that it has been a change for the better.
“After growing by just 0.2% last year, the economy has recently grown by 0.3% in the first quarter and at a much faster 0.7% in the second. Meanwhile surveys of business activity for the third quarter show that this stronger growth has persisted.
“Employment too has risen, with the number in work nationally up 275,000 in July compared to the same time in the previous year.
“Employment prospects in the region are also looking positive, with businesses upbeat about hiring more staff, although some have noted emerging concerns about the challenges of hiring and retaining skilled staff.”
Naisbitt believes economic growth will continue, backed by the policies of the Bank of England.
“The economy is expected to continue to grow next year, but at a more sustainable pace,” said Naisbitt.
“Economic growth will continue to be supported by the low interest rates set by the Monetary Policy Committee (MPC).
“The recent policy announcement that interest rates will be on hold until the unemployment rate falls to at least seven per cent, unless higher inflation again rears its head, offers businesses and households a reduction in one of the important uncertainties that they face.
“Against this background, the Coventry and Warwickshire local economy has contributed to the recovery and looks well placed to take advantage of the improvement in overall business conditions.”
“Therefore, while challenges for businesses remain, our surveys highlight an anticipated prospect of continued growth.”
Naisbitt will be joined by MPs Chris White and Marcus Jones at the conference, which will also hear from Sir Peter Rigby, chairman of the LEP, and Charles Morgan, of the Morgan Motor Company.
Vince Cable MP, the Business Secretary, will also provide a ministerial video address at the annual conference, which is being sponsored by LEP and Santander.
Dr Adam Marshall, head of policy at the British Chambers of Commerce, will host the event, which will also look back over the Chamber’s 110 years of history.