Member Article

North East could catch rates rise cold

The North East economy could pay a high price if interest rates continue to rise to dampen overheating in the South East, according to the region’s leading employers’ organisation. Latest data from the North East Chamber of Commerce shows signs that the fire has been taken out of the region’s economy.

NECC’s quarterly economic survey, the North East Business Barometer, shows that across 10 of 12 indicators, the North East economy had eased back from the relentless growth that the business community had recently experienced. Despite this, the North East is still performing far better than it has for many years. The concern amongst business leaders is that predictions of two further interest rises will have a negative impact on the region.

Maggie Pavlou, NECC president, said: “The North East business community has risen admirably to the challenge over recent years and we are rightly proud of the giant leaps we have taken to grow and create jobs and prosperity. “But we are deeply concerned that London sneezes and we are left with a full-blown cold. Our region cannot be left to pay the price for massive bonuses in the City and a rampaging housing market. “Make no bones about it, the figures released today are still extremely positive with growth well above where we were four or five years ago, but we need to send a strong message to Government ministers that it is in their best interests to ensure we don’t take a backward step.”

The North East Business Barometer showed that the top three concerns among North East businesses for the future were interest rates, inflation and energy prices.

This was posted in Bdaily's Members' News section by Ruth Mitchell .