BUSINESS leaders in Coventry and Warwickshire have urged caution after the release of the latest GDP figures.
The Office For National Statistics’ data has shown that the economy grew by 1.1% in the second quarter of 2010 – nearly double what was forecast.
The figure represented the fastest growth for more than four years and is 1.6% up on the second quarter last year.
However, Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said a sustained recovery still had to be nurtured.
She said: “These figures are better than expected and do bear out the fact that many businesses in Coventry and Warwickshire are more optimistic than they were 12 months ago.
“That said, the Government has only recently made a raft of cuts and they will not have filtered into the economy yet.”
She said the chamber would urge the Bank of England to keep interest rates low for the foreseeable future to ease pressure on the economy.
It would also urge the Government to stick to its policy of trying to ease the burden on business.
“The private sector needs all the assistance it can get as we look to rebalance the economy and create the jobs of the future,” she said.
Will Rogers, policy adviser at Birmingham Chamber of Commerce Group, said businesses in the area had been cheered by the growth.
“Much of the growth came from the key services sector, which accounts for about three-quarters of the UK economy. Business and finance posted its strongest rise in almost three years, up by 1.3% over the quarter.
“These figures are from a low base so while this is positive news, many challenges remain. We shouldn’t take this at face value and the positives need to be sustained and built upon,” he said.
