Member Article

North East economic growth continues says NECC

The region’s businesses continued to fight their way back to full health in the first quarter of 2011, according to a report.

The North East Chamber of Commerce’s flagship quarterly economic survey revealed that fortunes continued to be on the up in the North East from January to March 2011.

The quarter mirrored the improving picture at the end of 2010.

NECC’s North East Business Barometer, is a trends survey that shows the health and direction of the North East economy measured across 11 separate indicators.

A score above zero indicates trading conditions are improving.

The majority (eight) of the 11 indicators showed growth, including sales and orders for both domestic and export trade.

The survey also showed business confidence on the rise with expectations for employment, profit and turnover in the coming months all in the black.

Martyn Pellew, NECC president, said: “Growth at the end of 2010 was driven almost entirely by manufacturers while we are seeing the service sector begin to rally in 2011.

“More businesses are looking to recruit than over the previous year and a greater number of companies are operating at full capacity which is a positive sign. Overall, this is an extremely pleasing picture.”

According to the survey the biggest change since the last quarter has been a jump in prices, which can partly be put down to the January VAT rise.

It highlights that given that two of the most pressing concerns for respondents were inflation and interest rates demonstrates the difficulties the Bank of England’s Monetary Policy Committee faces in its monthly rate-setting meetings.

He added:“We cannot avoid the fact that there is still underlying caution among businesses and this will undoubtedly take time to dissipate.

However, we broadly saw a positive Budget statement in March with a number of initiatives announced that reflected NECC’s calls for more policies focused on inspiring business growth.“

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