A BAROMETER of the North-Easts business performance, released today, indicates the region is out of recession.
The North East Business Barometer (NEBB), which surveys a sample group of the 4,000 members of the North-East Chamber of Commerce (NECC), shows that the region finally moved into positive territory in the final quarter of last year.
North-East companies performed better both home and abroad in the latter part of last year, reporting stronger sales and orders.
Most importantly, there was a dramatic rise in business confidence, with companies anticipating both turnover and profits to rise this year.
The survey also found many firms are now in a position to invest in plant machinery and training for staff.
But there was a warning that despite the data being a fillip for the region at the start of this year, the economy is far from out of trouble.
James Ramsbotham, NECC chief executive, said: “NECC’s latest data is a fantastic tonic as we start 2010, but we cannot afford to get carried away.”
The survey period ended only two days after Corus announced plans to mothball the Teesside Cast Products plant in Tees Valley and the impact of this will filter through in future business barometers.
Mr Ramsbotham also urged the Government to continue with efforts to stimulate enterprise. He said: “Businesses have had to work ferociously hard to survive what has been an extremely tough few years.
“They will emerge from this recession battle-hardened and in better shape than before to capitalise on improving economic conditions however they still need a massive amount of support from the Government.
“Now is not the time to pull the plug on the range of initiatives that have been introduced to bring the UK economy out of intensive care.”
Simon Lenney, commercial director for Barclays in the North-East, which jointly produced the survey, said: “We are delighted to witness the growing optimism we see among our clients reflected in the North-East Business Barometer.”
In the survey, the indicator for UK sales has risen by 30.3 per cent during the past 12 months and the UK orders indicator has risen by 29.8 per cent.
The export side of the North-East economy continues to be a driver of economic fortunes although this area of commerce had remained stronger throughout the recession.
The NEBB has only two indicators in the red – prices have tumbled on a year ago, demonstrating how companies have had to cut their margins dramatically to keep business; and, over the past quarter firms have scaled back plans to take on new staff.
The survey was conducted in November and last month and is based on responses from 186 businesses.
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