Above expected GDP growth of 0.7% for the three months to September – the fastest rate of growth since the first three months of 2024 – is ‘an encouraging measure of general economic health’ but factors like soaring inflation, energy costs and business rates continue to be a barrier to growth, East Midlands Chamber has said.
The latest estimated data from the Office for National Statistics follows 0.6% growth in the three months to August and 0.5% in the three months to July.
East Midlands Chamber Chief Executive Scott Knowles said: “Economic growth at this rate will likely bring a degree of confidence to business, especially amid the context of the highly challenging trading conditions firms have needed to navigate but the extent of headwinds inhibiting business growth cannot be underestimated.
“While an encouraging measure of general economic health, GDP growth alone is not enough to give business the level of confidence needed to thrive and unlock investment. Inflation remains the greatest concern of East Midlands businesses, according to the findings of our Quarterly Economic Survey across the year but the fact inflation has soared to 3.5%, and is widely expected to rise further, will be of significant concern.
“The interest rate has risen to 4% and for firms looking to invest to grow, that brings a risk that investment intention could stall; East Midlands unemployment is high at 4.7%, despite a slight fall in the latest figures; the cost of employing staff remains challenging and energy prices are above what they should be as the Middle East conflict continues.
“Business must be incentivised to invest and while policymakers may take comfort in the level of growth we have seen in GDP, giving greater support to business must be top priority, whether around energy, business rates, corporate taxation or investment in skills and infrastructure, for example. These are policy asks called for in our landmark publication The Framework for Growth that we will continue to lobby for to unlock growth in the East Midlands.”
View East Midlands Chamber’s Framework for Growth here.
View East Midlands Chamber’s latest Quarterly Economic Survey for Q3 2026 here.
