Business confidence among manufacturers across Coventry and Warwickshire rose to 82.9 – up 6.9 points from Q1 2016, according to the region’s Chamber of Commerce’s Quarterly Economic Survey.
Over the past quarter, manufacturing companies based in Coventry and Warwickshire reported rising orders both domestically (up to 69.9 from 61.3) and in exports (from 67.5 to 70.2).
The likes of Jaguar Land Rover is thought to be one of the region’s primary drivers of manufacturing growth; however, the responses revealed manufacturers of all sizes and sectors are experiencing significant expansion.
That’s good news, as the survey’s 500 responses reportedly feeds into the British Chamber of Commerce’s national Quarterly Economic Survey (QES) and is used as a barometer for the economy as a whole.
Head of Warwickshire County Council’s Economy and Skills team, Dave Ayton-Hill, said Brexit and the resulting fall in the pound had impacted on the regional economy.
He commented: “The depreciation of the pound appears to be pulling the economy in two directions. On the one hand, businesses in the manufacturing sector are seeing strong growth both from overseas markets and on domestic orders.
“Those domestic orders could be increasing because their clients are seeing an upturn in exports. The service sector does, however, appear to be feeling the pinch slightly as price inflation is pushing past income growth and, therefore, reducing the spending power of consumers.”
Ayton-Hill added: “The overall economic outlook index for the region is down slightly but is still significantly higher than regional and national comparators which means the Coventry and Warwickshire economy remains strong and buoyant.”