Local businesses still face uphill battle despite economic growth – Chamber

Business leaders in Greater Birmingham have cautiously welcomed the unexpected economic expansion but remain concerned of the ‘eye watering’ cost pressures that firms face.

The economy expanded by 0.5 per cent in February, according to the Office for National Statistics (ONS), mainly due to the services sector having a strong month and a surprise boost in manufacturing and production.

Previously, the economists had only expected a growth of 0.1 per cent.

Raj Kandola (pictured), director of external affairs at the Greater Birmingham Chambers of Commerce, said: “This morning's better than expected GDP results will have been welcomed by the Chancellor in the face of increasing global economic instability.

"Nevertheless, data from our latest Quarterly Business Report reveals that local businesses continue to face eye watering cost pressures as a result of the announcements made in the Autumn Budget and uncertainty caused by the new US administration.

"In the months ahead, the Chancellor will need to reassure businesses that she has a clear plan to unlock growth - driving export activity in new markets, unlocking firm level investment and reducing the cost of doing business needs to be at the heart of this strategy.”