A survey of economic trends has revealed that firms in the region are optimistic about their prospects for the next six months.

More than 100 companies in the North-East responded to a questionnaire covering all areas of the economy and public sector.

The survey discovered encouraging signs and showed that firms in the region are investing in their future by providing more training for staff than almost anywhere else in England.

The new twice-yearly survey was conducted on behalf of the CBI and all English regional development agencies, including One NorthEast.

A total of 3,051 businesses nationally replied to the survey, which reported that:

* Despite concerns about the global economy and uncertainties in world politics, most businesses felt the overall business situation would improve,

* Positive trends in output were most apparent in the North-East and West Midlands,

* This region recorded relatively high numbers of job vacancies whereas the London labour market was least active,

* Investment is expected to pick up nationally with business in the region "bullish",

* Company funding of staff training was most extensive in the North-East and East of England, where almost 80 per cent of companies reported doing so during the past year.

The North-East also fared well in strategic issues contributing to business competitiveness - such as high levels of workforce and management skills, flexible working patterns, creativity, innovation and the availability of premises.

Alan Clarke, One NorthEast chief executive, said: "It is good to see how business is investing positively in its employees with companies in the North-East investing the highest amount in company training budgets."

Steve Rankin, regional CBI director, said: "These are very, very positive results for the region and underpin the anecdotal evidence I have picked up talking to companies across the North-East.

"What is extremely encouraging for the future is that companies seem to be spending more on training and are planning to spend even more than most other regions in England."