West Midlands quoted companies are holding their own, according to a survey from accountants Ernst & Young.
It has revealed that there were four profit warnings issued in the region by local firms in the second quarter, an increase of three when compared to the first three months of this year.
However, the same period last year saw six warnings announced, "indicating that the region's corporates are fairing better in today's economic climate".
Nationally, from April to June, there were 84 profit warnings, a decline of 13 when compared with the second quarter of 2005, and a decrease of one on the first three months of this year.
Of the four companies which issued warnings in the West Midlands, all are listed on the Alternative Investment Market, and across the UK there were 51 profit warnings from AIM-listed companies.
Ernst & Young says that while this could represent a more risk-averse attitude, AIM has grown significantly over the last year so, proportionately, the figure still represents less than five per cent of all AIM companies.
In the West Midlands, warnings came from companies operating in the telecoms, travel and leisure, support services and aerospace and defence sectors. The warnings issued stemmed from "sales short of forecasts" and "delays with/costs of new product development".
Ian Best, Ernst & Young's Birmingham-based corporate restructuring partner, said: "A key feature of the last quarter has been volatility in the global equity markets, due in part to resurgent inflation. And while the global economy is growing, rising prices, with associated interest rate rises, are still creating a feeling of uncertainty and a reduced appetite for risk.
"What is particularly encouraging for the West Midlands, though, is that manufacturing is benefiting both from a recovery at home and growth in the previously static Eurozone. UK manufacturing grew at its fastest pace in two years in June according to the Chartered Institute of Purchasing and Supply's Purchasing Managers' Index.
"This increase in demand has given firms the opportunity to increase prices which has helped them compensate for higher energy and raw materials costs."
Commenting on the retail sector, Mr Best said: "Whether the economy has benefited from the predicted £1 billion World Cup effect remains to be seen, but general retailers have issued five profit warn-ings in the second quarter of this year, a 50 per cent reduction from the previous quarter and a fall of nearly 30 per cent compared with the same period in 2005.
"However, although more positive retail spending figures have been released over the past few months, these numbers are deceptive as the increases are against a very low base. "The pressure on retailers to perform is tough and they cannot rely on short term props to trading, such as sporting events and the weather."
Mr Best added: "Key economic indicators are pointing in the right direction, but there isn't enough movement yet to be confident of a sustained economic recovery. Inflation and interest rates add uncertainty to the outlook."
"House prices are rising, but the consumer faces more immediate concerns of rising utility bills and increasing petrol prices, without the wage rises to match. The byword, at least until the next quarter, continues to be uncertainty."