BUSINESS in Darlington has been booming over the past month, however, some companies are concerned for the future, according to the latest figures.

Despite an overall positive increase in turnover, there has also been a downturn in employee figures and business confidence has decreased.

This implies that while business has been good, there is caution about the immediate future. It is thought this may be due to higher energy prices and their perceived effect on inflation and interest rates.

This month's business index has been evaluated by Neville Baldry, a partner at Clive Owen & Co LLP, chartered accountants and business advisors.

He said: "Major changes are abreast, with reports on the newly introduced public transport changes affecting shop traders. Local retailers face concern for their own survival, while the risk to public transport companies is another result of the enforced route changes.

"However, as teething problems settle, the long-term plans for regeneration and development hold an exciting and positive future."

One retailer bucking the trend is Williams music retailers, which has reported excellent results this quarter yet still has the peak of Christmas sales to come.

Another local company celebrating results is Cummins Darlington, which recently publicised its successes and its future continues to look promising.

Mr Baldry said: "The fall in employee levels is a trend reported by many local businesses, backed by the difficulty in recruiting quality staff. The other employment-related issue is the threat to small businesses of the proposed Government changes covering maternity and paternity leave and pay.

"However, until an official structure is announced, the result may be easier to manage than anticipated."

l The index assesses local business activity based on figures filed by a selection of firms in and around the Darlington area over the course of the past month. The business index figures compare and assess current business performance with previous months.