Chamber welcomes economy’s return to growth despite challenging backdrop for business

Business leaders in Greater Birmingham have welcomed the UK economy’s growth by 0.7 per cent covering July to September, the fastest quarterly growth for more than two years.

According to figures released by the Office for National Statistics (ONS), the growth was linked to a boost in AI with the services sector increasing by 0.9 per cent.

The computer programming, consultancy and related activity industry made the largest positive contribution to growth in the three months to September 2026. 

The production sector showed an increase by 0.1 per cent while the construction sector shrunk by 0.7 per cent.

Meanwhile, monthly GDP grew by 0.2 per cent in September 2026, after showing no growth in August 2026.

The growth in September 2026 was driven by a 0.2 per cent growth in services, with production growing by 0.3 per cent, and construction rising by 0.8 per cent in September 2026.

Speaking about the figures, Ruth Fleet (pictured), senior policy at advisor at Greater Birmingham Chambers of Commerce highlighted the challenging economic backdrop businesses face with high inflation and interest rates.

She said: “September’s return to growth is welcome, but a 0.2 per cent increase in GDP remains modest and underlines the need to create stronger conditions for sustained economic growth.

“Encouragingly, all three main sectors expanded during the month, with services growing by 0.2 per cent, production by 0.3 per cent and construction by 0.8 per cent.

“Looking at growth over three months, the economy is stronger - at 0.7 per cent - than we anticipated earlier this year.

“However, businesses continue to operate against a challenging economic backdrop. Inflation has risen to 3.5 per cent, driven in part by higher fuel costs, while last week’s interest rate increase will add further pressure on firms already facing elevated energy bills and borrowing costs. 

“The Budget contained some welcome measures, but stopped short of the fundamental action on business rates and energy costs that firms need. 

“If the Government wants to turn September’s modest growth into lasting momentum, reducing the cost of doing business and giving firms the confidence to invest must remain a priority. 

“Our Q4 Quarterly Business Report survey is now open and we want to hear from businesses across Greater Birmingham about the pressures and opportunities they are experiencing.”

Take part in the Q4 QBR survey and stand a chance to win a VIP bay booking for two hours for up to eight people at Skratch Golf.