QES reveals slight increase in the potential for growth

"Employment prospects jumped in the service sector and manufacturing, indicating that there is still a strong desire to recruit among businesses across the patch."

The economic outlook in Coventry and Warwickshire improved slightly at the start of 2025 according to a new survey among firms – and that has bolstered employment prospects in the region.

The Coventry and Warwickshire Chamber of Commerce’s first Quarterly Economic Survey (QES) of the year showed a slight increase in the potential for growth based on a range of answers given by businesses across the city and the county.

The survey, which is delivered in partnership with Prime Accountants Group and measures sentiment among businesses, is analysed by the Business Intelligence Service at Warwickshire County Council.

From the responses of businesses across the services and manufacturing sectors, it gives scores out of 100 where anything above 50 indicates growth and anything below 50 is negative. It looks at a range of aspects of doing business in the region, including the outlook for employment, investment, confidence, and current and future orderbooks for both domestic and overseas sales.

Domestic sales in the service sector and in manufacturing both remain above the crucial 50-point mark but were, however, slightly less than three months ago. Overseas sales did, however, improve on the last survey although the service sector remains in negative territory.

Employment prospects jumped to a score of 67.7 in the service sector and the 72.7 in manufacturing indicating that there is still a strong desire to recruit among businesses across the patch. Confidence fell slightly in the service sector but was still well above 50 at 62.7 and it rose in manufacturing to 56.3. It resulted in overall economic outlook of 57.0, up from 56.3 in the final quarter of 2024.

Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said the findings showed the resilience of the region but believes there is still a huge amount of uncertainty in the economy.

He said: “The businesses of Coventry and Warwickshire never cease to amaze me. The last few years have been shrouded in so much uncertainty and, yet, they still – in the main – have a positive outlook and are always looking for opportunities to grow.

“This survey was conducted at a point when we were waiting to hear what tariffs would be coming from the USA. We’ve since had the announcement and then several follow-up amendments to the original tariffs. Some businesses across our region are directly and severely affected, for others it will have a secondary effect. However, it has continued with the uncertain picture and our message to Government is to do everything it can to ease the burden on businesses and provide a stable foundation from which they can grow.”

Steve Harcourt, director of Prime Accountants Group and president of the Chamber, said: “Firms are having to factor in rising NI contributions as well as other costs of doing business and, yet, the general feeling across Coventry and Warwickshire is that companies are still looking to grow. But, with so much uncertainty around and an everchanging picture, the sentiment can change pretty quickly so it’s vitally important that companies ask for support where they need it.”