BUSINESS confidence in the region has fallen slightly during the past year, according to a survey by the regional Chamber of Commerce.

Despite improvements in important areas of the region's business performance during the past three months, optimism about future growth has fallen slightly.

The quarterly economic survey carried out on behalf of the North-East Chamber of Commerce (NECC) showed that despite this, UK sales during the past three months showed a marked increase.

But export sales, investment and forecast turnover were down, while the profits remained constant.

NECC president Alan Ferguson said: "Performance and confidence indicators do not necessarily have to match up in these surveys, with confidence often influenced by the previous quarter's results. Most respondents are still talking of strong sales, exports and recruitment and seem to expect a status quo in the coming months. Some will be worried about interest rate rises, business rates and the tax burden.

"We must continue to press Government to maintain the current atmosphere of stability and economic conditions in which business confidence remains robust, leading to investment and expansion."

Margaret Fay, regional development agency One NorthEast chairwoman, said: "It is important to remember these figures only cover a short period of time and business performance, even in strong economies, is always going to experience lulls and even a certain amount of decline.

"However, these periods provide useful wake-up calls showing there is no room for complacency. The region must continue to build on strong sales and UK orders to overcome the drop in business confidence."