15 January 2018
The Economic Outlook Index for Coventry & Warwickshire for the 4th quarter shows a strong improvement in business confidence.
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The C&W Chamber of Commerce, in partnership with Warwickshire County Council, undertakes a Quarterly Economic Survey (QES) to gauge local business performance and market expectations. Business confidence and economic success tend to move in the same direction and, therefore, the results of the survey give useful insights into Warwickshire’s economy.
The Economic Outlook Index for Coventry & Warwickshire for the 4th quarter shows a strong improvement in business confidence, with the overall increasing rising by 3.9 points to 67.3. This is the strongest reading for the whole of 2017, and shows that Coventry & Warwickshire businesses are ending the year on a high. Both service and manufacturing services have seen good improvements, with the Economic Outlook Index for Manufacturing reaching a new high of 71.1 (up by a huge 5.8 points), and Services matching the their old high of 66.2 (previously set in Q2 2017), with is a rise of 3.2 points on the previous quarter. The Coventry & Warwickshire Economic Outlook Index continues to remain well above both regional and national comparator PMIs (Purchasers Managers Index). The West Midlands Regional PMI (produced by the West Midlands Economic Forum in conjunction with Birmingham City University) for September stood at 57.2, which saw a slight rise on the previous month but not as significant growth as we have seen in Coventry & Warwickshire. Nationally, the Markits Manufacturing PMI has been largely flat, with the latest figures standing at 56.3 (up just 0.3 on September), and the Services PMI has seen a slight improvement, rising from 53.6 in September to 55.6. The rise in the Economic Outlook is heartening given wider concerns about economic uncertainty and falling consumer confidence within the UK economy. Clearly our manufacturing sector is continuing to benefit from the low pound and strong growth in the EU and global markets; and the strengthening of the service sector suggests that the local domestic economy remains buoyant and performing well above the national average.