Partner Article

North East sees “end of recession“

The North East is no longer in the grip of the recession, according to date released today.

Despite the good news, business leaders warned that was too early to celebrate.

The North East Chamber of Commerce (NECC) has published its quarterly economic survey – the North East Business Barometer (NEBB) – which shows that companies performed better both in the UK and abroad in the final part of last year.

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 Tees Valley and the impact of this will filter through in future business barometers.

“Businesses have had to work ferociously hard to survive what has been an extremely tough few years. They will emerge from this recession battle hardened and in better shape than before to capitalise on improving economic conditions however they still need a massive amount of support from the Government. Now is not the time to pull the plug on the range of initiatives that have been introduced to bring the UK economy out of intensive care.”

Simon Lenney, Commercial Director for Barclays in the North East, who helped compile the figures, said: “We’re delighted to witness the growing optimism we see amongst our clients reflected in the North East Business Barometer. Increasing our commercial banking market share in the North East is a key focus for Barclays in 2010, as the bank also approaches the New Year with renewed confidence in the region’s business outlook.”

The NEBB shows some clear indicators of improvement for NECC members in the last 12 months. UK sales have apparently risen by 30.3%, and UK orders by 29.8%.

There were only two figures showing drops. Prices have fallen since last year – good news for buyers, but an indicator of how companies have had to cut their margins to keep business. In addition, firms have scaled back plans to take on new staff in the last three months.

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