Member Article

North East investment and job growth weakens across Q3

The North East Chamber of Commerce’s Quarterly Economic Survey (QES) has revealed that the pace of growth among North East firms slowed in Quarter 3, whilst scores for UK sales and orders, investment and workforce have all dipped.

NECC Director of Policy Ross Smith attributed the slowdown to factors including the fall in oil price, turbulence in global markets and continued reductions in public spending.

But there are some more positive signs, with confidence for the next 12 months showing a slight increase, and scores for export sales and orders also rising – though remaining well below levels seen a year ago.

Mr Smith said: “It is disappointing to see a slowdown in growth, but certainly not alarming. Confidence levels for the longer term remain high, but there are several factors affecting business at the moment.

“We have many members involved in the offshore industry who have been hit by the fall in the oil price, and our exporters are facing tough conditions across a series of global markets at the moment. Additionally, the public sector, which is an important customer for many of our members, continues to face spending cuts.

“It’s important to remember that the survey still shows our members increasing sales, jobs and investment, and coming on the back of very high growth levels for the past 18 months, that has to be a good thing. But this is a reminder that we can’t ever take that for granted.”

NECC President Mike Matthews added: “This last quarter has supplied some incredible highs and one devastating low in particular.

“The opening of the Hitachi plant at Aycliffe took place and Nissan announced it is to build the new Juke on Wearside – great news for our region, creating and securing thousands of jobs.

“But September also brought news of SSI’s mothballing, with the loss of 1,700 jobs. This heart-breaking announcement is so emotive, not just because of the hardworking individuals who have given their all to the plant, but because it is a devastating blow to Teesside’s proud history of steelmaking.”