BUSINESS confidence has bounced back in Coventry and Warwickshire.
The Coventry and Warwickshire Chamber of Commerce’s latest Quarterly Economic Survey (QES) saw an unexpected rise in sentiment among companies in both manufacturing and service sectors.
However, the survey was conducted ahead of the cyber-attack that hit Jaguar Land Rover.
The survey, which measures how business owners are feeling, is analysed by the Business Intelligence Service at Warwickshire County Council.
It showed an increase in domestic orders received by services and manufacturing businesses compared to three months ago – but no change in overseas sales.
It also indicated employment prospects had improved compared to the last quarter, while investment decisions and cashflow had been boosted too.
Chamber chief executive Corin Crane said the survey showed the resilience of businesses in Coventry and Warwickshire.
He said: “When faced with the most incredibly challenging circumstances, they simply knuckle down, innovate and continue to make this an amazing place to do business.
“However, there is absolutely no doubting that these are really difficult times for firms and we are urging the Chancellor to avoid any fresh taxes or cost rises for businesses in the November Budget.
“A growth in confidence on our patch is positive news but we know from speaking to businesses that it’s still a tough climate out there and we want to see this November’s Budget offer a real incentive to grow.”
Todd Williams, Insight Analyst at Warwickshire County Council, said local businesses were still worried about low overseas sales, as well as low cashflow and investment in the local services sector.
He added: “Local concerns around labour costs remain significant for both the services and manufacturing sectors, with the manufacturing sector also being very concerned about raw material costs and utilities.
“Local recruitment difficulties are a mixed picture, a slight improvement for the services sector being offset by severe challenges in the manufacturing sector.
“Local investment and training remain weak for the services sector, yet both are very strong for the manufacturing sector. The local services sector is also very concerned about labour costs and taxation.
“Despite these concerns, local employment is not expected to decrease, contrary to the national picture.”
