North-east out of recession, report says

Monday 11th January 2010

The north-east of England clawed itself out of recession at the end of last year, a report said on Monday.

Despite this, business leaders have warned it is still too early for a celebration and the government should continue with efforts to stimulate growth in the economy.

Part of the data published by the North-East Chamber of Commerce (NECC) in its quarterly economic survey - the north-east business barometer (NEBB) also partnered by Barclays, showed that companies were improving both at home and abroad at the end of last year.

The study showed that companies in the region were boosted by making stronger sales and orders and were in the position to now invest in plant machinery and more training for staff.

James Ramsbotham, NECC chief executive, said: "NECC's latest data is a fantastic tonic as we start 2010, however we cannot afford to get carried away.

"The survey period ended just two days after Corus announced plans to mothball the Teesside cast products plant in TeesValley and the impact of this will filter through in future business barometers."

Businesses have worked hard to survive through a tough period in the last few years and companies will emerge from the recession hardened and in a better shape than before according to the NECC.

However these companies will still need massive support from the government and now is not the time to end the range of initiatives that were introduced to help bring the UK out of the recession, it added.

Simon Lenney, commercial director for Barclays in the north-east said: "At Barclays, we've seen at first hand the resilience of businesses in the region over the past 18 months, and we're delighted to witness the growing optimism we see amongst our clients reflected in the NEBB."

The study shows how far profits have changed since a year ago with sales in the UK rising over 31 per cent over the past year and orders have risen by 30 per cent as the export side of the north-east continues to be the driver.

Only two indicators highlighted by the NEBB were in the red, with prices plummeting on a year ago how companies have had to cut their margins and reduce plans to take on new staff in order to make the most of business.

The survey also indicates growing confidence with companies anticipating a good turnover and profits will continue to rise this year.

Related News

<< Back To News Listings

News Article Search