Member Article

Continued growth for NE economy

The North East economy has made a strong start to 2008, despite some strong challenges, according to new data. The North East Chamber of Commerce’s quarterly economic survey, the North East Business Barometer, showed that the region’s economy is still thriving despite fears of a worldwide slowdown.

Export markets continue to grow with respondents reporting rising sales and orders helping the economy to grow. Despite the current global economic despondency and a projected UK slowdown the majority of respondents are confident about the months ahead.

Respondents to the survey have highlighted high energy prices and inflation as key concerns which must be taken note of by the Government. However, inflationary pressures are not being translated into price rises which will ease some pressure on the Bank.

Looking ahead, companies are demonstrating a cautiously optimistic attitude with the majority forecasting an increase in profitability and turnover.

Ross Smith, head of policy and research at NECC, said: “NECC members have made a strong start to 2008 in the face of some difficult trading conditions. Despite rising commodity prices, weakened growth in the eurozone and US, and reduced demand North East businesses remain confident about the future.

“There will be many challenges in the months ahead but North East businesses appear ready to deal with this and remain bullish about their prospects. “However, high energy prices in particular represent a significant concern and we would urge both the Government and the Bank of England to be mindful of the increasing cost pressures on business when making fiscal and monetary decisions.”

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