BUSINESS performance in the region has held up well in the second quarter, according to research.

Steady growth in sales and orders has been reported in domestic and overseas markets, with both manufacturing and service sectors building on a positive start to the year.

Research carried out last month by Economic Research Services, in association with the North-East Chamber of Commerce, for development agency One NorthEast, covered mainly small and medium-sized enterprises.

Michael Bird, chief executive of the North-East Chamber of Commerce, said: "The figures are encouraging, and once again reveal a far better performance than people predicted."