Businesses in Birmingham and Solihull were left facing the harsh
realities of the recession as the UK economy surprisingly shrank by
for a record six quarter in a row.
The shock 0.4 per cent third-quarter fall takes the total loss
of output since the recession began last year to 5.9 per cent, the
Office for National Statistics (ONS) said today.
Will Rogers, policy adviser at Birmingham Chamber of Commerce
and Industry (BCI), said: "Today's figures came as a shock with
most experts expecting the UK officially to be out of
recession.
"This underlines that the regional and national economy faces
many challenges, not the least of which is the manufacturing sector
of which the West Midlands still heavily relies.
"Our latest surveys showed that economic output was no longer
declining in the West Midlands but there are no signs of growth.
This, coupled with the fact that unemployment in the West midlands
is higher than anywhere else in the UK, presents sobering
reading.
"It's important that the challenges facing business are not
underestimated. The Bank of England's inflation report is due out
next month and this will highlight the prospect of any
recovery.
"And today's deeply disappointing figures will raise the
prospect of the Bank Monetary Policy Committee extending its
quantitative easing programme."