Downward trend continues

Employment levels remained positive, against the national trend, but the overall picture was disappointing.

Peter Hogan, of accountants Clive Owen and Co, who compiled the index, said business owners were confident enough to continue recruiting, despite falling turnovers, because the commercial property industry was flourishing in the town.

"Companies involved in the commercial property industry seem to be thriving due to high numbers of Darlington business owners continuing to invest in buy-to-lets while interest rates are low.

"As more and more office space is acquired, businesses are confident enough to continue recruiting despite falling turnovers."

He also said the outcome of the Competition Commission's investigation into the Safeway bids could drive up food prices in the town.

After much waiting, Darlington's consumers may finally learn the outcome of the investigation, which could have a knock-on effect on the town, which has two Safeway stores, two Morrisons stores and an Asda store.

"Agreement from the Department of Trade and Industry for Morrison or Asda to go ahead with their offer could create less choice in terms of products and prices for Darlington shoppers," he said.

"Employees of the town's Safeway stores continue to face uncertainty as their job security is in the balance until their new owner is revealed."

One Clive Owen and Co client said he believed business owners were struggling to predict which way the industrial markets would go.

Despite a mention of recession several months ago, he believes the economy has not deteriorated, nor have prospects improved.

He said the lack of business confidence was counteracted by consumer spending, which continued to lull businesses into a false sense of security.

The business index assesses local business activity based on figures filed by a selection of firms, in and around the Darlington area, in the course of the last month