The East and West Midlands have come out first and second when it comes to areas of high investment based on data in a new quarterly economic study from KPMG Ƶ and the University of Nottingham.
Decent investment is driving growth across the Midlands, with East Midlands recording strong consumer growth and the West seeing spikes in research and innovation, according to new analysis.
The Local Business Pulse Index – partly drawn up using AI technology – suggests both areas are High Investment Areas – places which share an expected high rate of growth in business investment.
Standout areas getting high levels of investment in the East Midlands include Amber Valley, Hinckley, North West Leicestershire and Ashfield; and in the West Midlands include Cannock Chase, Nuneaton, Stafford, Tamworth and Sandwell.
The index covers 363 Ƶ areas, drawing on data covering businesses, employees, and consumers. The online tool is aimed at businesses and local government leaders to give them detailed snapshots of individual areas.
The insights are placed into seven clusters designed to reflect common business conditions and shared economic strengths – Business Creation; Sales Growth; High Investment; Employment Growth; Research and Development; Consumer and Leisure; and High Productivity.
Andy Bostock, Birmingham office senior partner at KPMG, said: “Understanding and harnessing local economic strengths is central to securing regional growth across the Ƶ.
“Data-led insights drawn from the Local Business Pulse Index can support local leaders as well as inform investment and policy decisions.
“Across the Midlands, both the east and west are seeing higher levels of investment compared to the rest of the Ƶ, a great result in a time of economic difficulty.
“The East Midlands is also benefiting from high consumer spending whereas research and innovation is a major growth area for the West Midlands.
“Overall, data from the Local Business Pulse Index is positive across several key sectors in the Midlands and outlines clear pathways for growth in the coming quarter.
“As a firm with a heritage in the Ƶ regions, we work with local businesses across the country to identify productive, local potential.
“Our collaboration with the University of Nottingham provides detailed local snapshots on key drivers of growth.”
The index also suggests the East Midlands stands out for strong growth in consumer spending, with households in better financial health compared with other parts of the Ƶ.
Meanwhile West Midlands cities are seeing high rates of research and innovation growth and employment growth.
The index will be updated each financial quarter, presenting a current and forward-looking view across each area.
Professor John Gathergood, of the University of Nottingham School of Economics, said: “We are delighted to bring together the latest economic data, together with artificial intelligence technologies, to create this exciting new product with KPMG.
“It will support businesses and governments to help make better decisions about localities across Great Britain.”
The index can be seen here: https://kpmg.com/uk/local-business-pulse-index.html
