North East businesses welcome GDP rise

North East business leaders have welcomed the announcement of growth in UK GDP, saying it will boost the region’s confidence.

GDP grew by 0.6% in Q2 of 2013, including 0.6% growth in the service sector and production industries, and 0.9% growth across construction.

North East Chamber of Commerce, chief executive, James Ramsbotham, said: “It is encouraging to see growth accelerating and today’s estimates will provide a welcome boost to business optimism across the UK.

“The GDP estimates very much mirror the findings of NECC’s Quarterly Economic Survey for the same period, which demonstrates that businesses are investing more, recruiting more and have more sales and orders than at any time since the beginning of the recession.

“The North East has seen slow but steady growth across the private sector for the past 12 months. This is not yet the level of growth we would hope for and there remain major issues to be addressed, such as skills, but it reflects our view that business performance in the North East is now at its strongest level since 2008.”

Robert Forrester, chief executive of Vertu Motors, said: “Vertu Motors today announced strong trading figures for the first four months of this year. For the official growth figures to reflect this positivity is excellent news and can only further boost confidence.”

George Rafferty, chief executive of NOF Energy, the business development organisation for oil, gas, nuclear and offshore renewables sectors, has highlighted the significant contribution the energy sector supply chain has played in the growth of the UK economy.

He said: “The energy sector, in particular the oil & gas industry, has enjoyed steady growth in recent months and has played a significant part in helping the UK achieve 0.6 percent growth in the last quarter.

“Economists have lamented the detrimental effect on the economy of reduced production from the North Sea in comparison to the 1970s and 80s, however, contrary to many other areas of the economy the oil & gas industry has bucked the trend of the economic downturn, particularly from within the supply chain.

“In addition to the high levels of exports delivered by supply chain companies, whose products and services are in demand across the globe, attention is again turning to the North Sea, which is providing considerable opportunities for supply chain companies.

“The North Sea is now benefitting from record investment in new developments and improvements to existing assets with £100 billion earmarked for these operations, which will have a tremendous impact on the UK industry and, in turn, the economy.”

Nigel Mills, chairman of the North East based Entrepreneurs’ Forum, said: “Continued growth in the economy is welcome and we believe that owner managed businesses here in the North of England are one of the driving forces of that growth. Our own monitoring suggests they are growing at a rate ten times that of the rest of the economy because they have been willing to invest and push their businesses forward.”

Jerem Middleton, CEO of Newcastle-based investment firm, Middleton Enterprises, said: “The rise in the GDP figures is extremely encouraging for business.

“It shows that economic growth is returning and that the recovery is cascading down throughout the real economy. It should be hoped that this news will give businesses the confidence to invest and expand, which also will help the economy return to full health.”

Andrew Wilkinson, Partner at chartered surveyors Sanderson Weatherall, in Stockton said: “The rise in GDP of 6% is reflective of what we are seeing across the Tees Valley, County Durham and North Yorkshire. There is positivity among the businesses we are working with, who are deciding to ‘just get on and do it’, and this is resulting in sales, lettings and acquisitions.”

Mike Odysseas, managing director of Odyssey Systems, said: “This is fantastic news and I hope the pick-up in the UK’s economic wellbeing continues

“It is good to see that the Government’s efforts to get the economy back on track and its ambitions to drive down public sector costs are finally starting to come to fruition.

“An upward shift in the GDP figures is an important factor when it comes to boosting business confidence, which should help contribute to the UK’s economic recovery.

“More people supporting the UK business community by commissioning services and buying goods from UK providers would further enhance the economy.”

Bryan Bunn, managing director at the Nortech group of companies, a successful professional engineering design and project management company based at Wynyard, said: “I welcome today’s positive growth figures, as they are twice as strong as the 0.3% rise recorded in the first three months. This growth demonstrates that the UK is on track for recovery; however certain sectors are doing better than others.

“I am seeing major growth in the UK oil & gas industry and this is extremely good news for the economy as a whole. Our company alone is undergoing strong growth and development. Turnover has increased three-fold and we have taken on 74 new members of staff since starting up with a team of four in 2011.”

Jonathan Willett, managing director of Henderson Insurance Brokers in Teesside, said of the latest growth figures: “The positive growth figures are good news for the economy as a whole and show that we are on the right track for sound economic recovery.

“The UK will be the first major economy to estimate growth for the April-June period, so this is a good indicator of how we are placed currently. The economy is certainly showing ‘welcome and long-overdue’ signs of growth. However, most ordinary families will still not feel the benefit of the recovery in GDP, because of wages lagging behind inflation.”