AWM gives cautious welcome to recession exit

THE chief executive of Advantage West Midlands has given a cautious welcome to the news that the UK economy has officially emerged from the recession.

Latest figures published by the Office of National Statistics have shown  that the economy grew has grown by 0.1% in the last three months of 2009. The economy had previously contracted for six consecutive quarters – the longest period since quarterly figures were first recorded in 1955.

Mick Laverty said: “The ONS data is very welcome news for businesses and people across the region. It indicates that the economy appears to have finally turned the corner.

“The West Midlands economy has been hit hard by the recession so we have more reason than most to be pleased about the announcement.”

Mr Laverty said the national statistics confirmed many of the improvements observed across the regional economy, including:
•    Growth in the level of exports which – combined with the falling value of Sterling – have boosted hopes of an export-led recovery and better times ahead for the region’s hard pressed manufacturing sector
•    Improvements in the employment rate of the region combined with a reduction in the unemployment rate. Unemployment is now falling and importantly is falling more quickly than other parts of the UK
•    A significant increase in the proportion of vacancies available in the region, both compared to previous months and also in relation to other regions
•    Improvements in the level of business activity and new orders, as evidenced over the past few months in the RDA sponsored Purchasing Managers Index (PMI).

“Advantage West Midlands has been supporting companies through the difficult economic climate and continuing to invest in activity in the West Midlands that will enable new and existing businesses to grow and grasp those new opportunities the recovery will present,” he added.

However, he said the 0.1% growth figure underlined the very tentative nature of the recovery.

“For this reason the positive news from ONS must be treated with some caution, as figures may yet be adjusted either downwards or upwards.

“We must also keep in mind that many of the businesses which have survived the recession will continue to need support following a long period of challenges. Advantage West Midlands is investing £180m a year into business support to help companies secure their success long term,” he said.