Partner Article

Export is key to recovery

Foreign markets could be the key to the region’s economic recovery according to a new report.

The North East Business Barometer has shown that the export trade in the region is flourishing, while domestic sales continue to struggle.

Export sales from the region are positive, 9.5 points up on lat year, while export order books are up 14 points on Q2 in 2010. This success has begun to affect employment levels within businesses, which have reported an increase in recruitment numbers.

Andrew Miller, director at Barclays Wealth, said: “This data clearly shows that exports are making up for the still quite sluggish demand in the UK.

“This appears to be to the North East’s advantage as our region has above average growth in comparison to other parts of the country.”

There is some concern over the slip in UK sales and order over the last quarter. While both areas continue to grow, it is at a slower place than previous periods, with UK orders standing at 0.6 points lower than a year ago at 2.8 points.

Manufacturers have also reported a more positive performance than many service sector companies, but only one in four companies are currently operation at full capacity.

President of the North East Chamber of Commerce, John Mowbray was positive about the findings, though recognised that more still needed to be done.

He said: “It is clear that a focus on enabling more companies to access international markets will be crucial to accelerating growth, but we cannot rely on exports alone indefinitely.

“It is good to see growth in the company start to filer through to increased employment, particularly as the economy will be reliant on private sector job growth as public spending cuts bite.”

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