THE North-East Chamber of Commerce last night spoke of a returning “feelgood” factor as growth figures showed that the UK has emerged from the depths of a s double dip recession.

Its policy director Ross Smith claimed figures showing the economy grew by one per cent in the last quarter was confirmation of what it already knew in the North-East – that businesses were performing well.

He said: “Hopefully this news will add to the positivity we have seen throughout the regional manufacturing, engineering and service sectors in our own quarterly economic survey, which also demonstrates that businesses are increasing workforces at a rate not seen since 2008.

“There is undoubtedly a feelgood factor attached to the UK officially emerging from recession, particularly as growth levels are in excess of those predicted with the best quarterly figures since 2007.”

Companies who spoke to The Northern Echo welcomed the latest news on the economy, but most added a note of caution.

Dave Nicholson, managing director of Billingham transport and warehousing business Nicholson's Group, said: "We have noticed an upturn in our business over the last six weeks and we will have to wait and see if that is a sign of the economy turning around or if it is just seasonal.

“It may be the case that we are being used to transport a lot of deliveries to shops as they stock up for Christmas.”

Graham Howard, owner of Howards, a family-run bistro in Stokesley, North Yorkshire, said: “Despite a non-existent summer, trade has definitely picked up in the last couple of months- turnover is higher and people are spending money again.

“But customers want real value for money and business is no longer consistent or guaranteed.”

There was criticism from one of the country’s biggest unions, Unite, that too much growth was centred on London and the service sector.

It’s general secretary Len McCluskey said there had been an artificial boost to the economy generated by ticket sales for the London Olympics and also said the construction industry – a more realistic indicator of health – “remained in the doldrums”.

Meanwhile, those out of work – the North-East retains the highest unemployment rate in the country – were underwhelmed by the economic figures.

Alan Gregg, 41, who was visiting Northallerton’s Job Centre Plus yesterday, said: “Lots of people are not holding out much hope that they will back in work anytime soon.

“I suspect the news on the economy might be good news for politicians, but not necessarily for individuals.”