‘Surging optimism’ will create North East jobs according to Chambers

Surging optimism across North East business is creating a wealth of new jobs across all sectors, according to the region’s largest quarterly business survey.

Today’s results are the highest overall scores recorded by any QES since the survey began in 1995.

The QES, produced by the North East Chamber of Commerce (NECC), recorded rises in investment plans (plant investment the highest since 1997) and significant gains in both current workforce and future recruitment in the latest study out today.

Optimism across the region continues to rise as firms delivered another boost for the regional economy following strong results in the last two quarters. Businesses reported an upsurge in trade with domestic and foreign markets, a trend established in Q1 of 2014 has continued into Q2.

Having charted slow but steady growth across most indicators throughout 2013, the last Quarter of that year returned the best set of results since 2003. Today’s figures demonstrate a continuing positive trend and thatconfidence levels remain high.

The QES is a trends survey that shows the health and direction of the North East economy. Measured across 11 separate indicators, any score above zero indicates trading conditions are improving.

Published today, the QES shows confidence remains strong in the manufacturing sector with most measures positive. In particular sales, investment plans and current and future workforce projections all looking positive.

Across all indicators, year-on-year scores are positive, with the only exceptions being cashflow and export orders.

NECC policy and research manager, Mark Stephenson, said: “We are starting to see a real trend developing across both manufacturing and service sectors. The slow but steady growth throughout 2013 has provided the momentum for an excellent first half of 2014, which is seeing rising optimism across the region reflected in future plans for recruitment and business investment.

“In particular, this quarter has seen respondents send an incredibly positive message on future recruitment. Over 60% of firms had attempted to recruit full time staff, which is comfortably higher than last quarter (53.8%) and considerably above last year’s figure (45.7%) which is a clear statement of confidence and highly encouraging.

“Taken against last year’s figures, expectations are markedly stronger. Businesses are looking to hire and the region is very much open for business.”

NECC president, David Laws, said: “The strong positivity that fed through from the manufacturing sector in the first quarter of this year was very noticeable and has continued this quarter, albeit it has been more than matched by feedback from the service sector which is hugely welcome.

“The North East labour market continues to grow, albeit with our unemployment rate remaining the highest in the UK. However, the rate of increase in the North East employment figure is the highest in the UK in sectors as varied as biologics, pharmaceuticals, automotive, oil and gas – to name but a few.”

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