Corin Crane, Chief Executive of the Coventry and Warwickshire Chamber of Commerce, said: “The consensus is that the UK will avoid recession in 2023 and that is a small crumb of comfort for all of us in business.

“However, the economy is stuck in a low growth rut and there are a number of factors behind that and we are hearing about those constantly from companies across the patch.

“It’s vitally important that inflation starts to come down and that businesses start to see more certainty when it comes to costs and interest rates.

“We also need to address labour shortages and the serious decline in exports. This country – and this region – is a hotbed for companies that trade overseas and, right now, we’re simply not doing enough of that.

“One of the hidden figures within the latest statistics is a 0.6 per cent drop in construction output and, when you couple this with rising interest rates and recruitment difficulties, we need to take a closer look on how this affects our plans for growth in the region.”

David Bharier, Head of Research at the British Chambers of Commerce, said: “Today's GDP figure of 0.1 per cent growth for the three months to April further indicates the UK economy is trapped on a low-growth trajectory. Our own forecast expects 0.3 per cent growth for the whole of 2023 as our research continues to show that most SMEs are still holding back on their investment plans. 

“Our forecast also expects a 4.7 per cent decline in exports this year. Further upcoming changes on trade with the EU, such as new reporting requirements and import charges, will also add more pressure to exporters, many of whom have seen diminished activity due to mounting trade barriers. 

“Following three years of economic shocks, a stronger investment environment could be created by easing the tightness in the labour market, tackling stubbornly high inflation, and significantly improving our trading relationships.”