BUSINESS confidence and turnover in Darlington were depressed during June, recent figures have revealed.

But employment levels have managed to remain marginally positive, according to the Darlington Business Index.

Clive Owen, senior partner at Clive Owen and Company, which compiles the index, said employment had been boosted by the fact that Darlington was a cost-effective place to locate a business.

With Lingfield Point, in McMullen Road, attracting businesses including call centres, which were previously occupying much larger commercial centres such as Newcastle, Darlington was becoming a more viable option for relocating businesses.

He said the growing availability of office space in Darlington inevitably meant higher numbers of employees, as had been seen at Lingfield Point, with Capita planning to move 400 staff to Lingfield House.

One client of Clive Owen, a fabrications company, said business confidence could be falling because of scheduled work being postponed in the unstable business climate.

Mr Owen said: "Perhaps one of the most blatant indicators about the confidence to invest in Darlington is the property formerly occupied by Dressers, in High Row, which has stood empty for some time now.

"This directly contradicts the surge of occupancy at Lingfield Point, but possibly emphasises the difference between the retail industry and other sectors."

Clive Owen clients, who help make up the index each month, also welcomed news that Amec, which employs 700 workers in the town, had strengthened its position through its acquisition of Wrights Engineering (UK) in Cheshire.

Wrights will be integrated into Amec's shutdown and maintenance division, securing future job opportunities in Darlington for the engineering services firm.

With an international business presence like Amec in the town, and continued refurbishment of office space, Mr Owen predicted that confidence in the local economy would improve.

The index assesses local business activity based on figures from a selection of companies in Darlington over the month.

The figures compare and assess business performance against the performance of companies in January 1999.