Business leaders have said the region is a long way from a sustained recovery despite better than expected GDP figures.
Figures from the Office For National Statistics say GDP grew 0.8 per cent in the third quarter of 2010 but chambers of commerce from the West Midlands are warning against complacency.
Graham Aylott, policy officer at the Coventry and Warwickshire Chamber of Commerce, said the latest GDP figures were better than expected but could not be used as a barometer for short term growth.
Mr Aylott said: “These figures are better than expected and build on the second quarter growth of 1.2 per cent.
“But, that said, we cannot read too much into them. The fact that we have had three quarters of growth is undoubtedly positive but we cannot become complacent.
“We have just seen one of the toughest public spending reviews for many years and the affects of that are a long way off being felt in the ‘real’ economy.
“So what we must see and hear from the Government is a commitment to rebalancing the economy being driven through in order to help create the jobs and economic prosperity of the future.
“This is not a time to pat ourselves on the back and say the good times have returned. This a time to learn from the mistakes of the past and make sure everything is in place to build a sustained recovery.
“I believe the Bank of England understands that and, therefore, I would be shocked to see any movement on interest rates on the back of these figures.”
Will Rogers, policy adviser at Birmingham Chamber Group, said the region, and the country as a whole, was “not out of the woods yet”, and believes and there is still the threat of a double dip recession.
Mr Rogers said: “The Office for Budget Responsibility has estimated that the public sector spending cuts will result in the loss of 490,000 public sector jobs by 2014/2015. In Birmingham the total employment reduction, direct and indirect, is predicted to be 19,880, equivalent to 4.1 per cent of total employment. It is unreasonable for government to expect the private sector to take up this slack unless conditions are created which will encourage businesses to create jobs and wealth.
“The Government must play its part by supporting capital investment. If access to finance continues to hinder the business community, the Government will come under pressure to implement further measures, such as fresh stimulus through quantitative easing that will help grow the economy further.
“Less red tape and cutting down on legislation is what Chamber member businesses are asking for.”