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Fresh data released today has indicated the North East clawed its way out of recession in the last quarter of 2009, although business leaders warned it is too early for great celebration.
The North East Chamber of Commerce (NECC) has published its flagship quarterly economic survey –the North East Business Barometer (NEBB) – in partnership with Barclays, which shows that companies performed better both home and abroad in the final part of last year.
The data will be a tremendous fillip for the region at the start of a new decade but it will be heavily caveated with experts warning that the economy is far from out of the woods. NECC is urging the Government to continue with efforts to stimulate enterprise for some time yet before sustained growth can be assured.
The NEBB showed that companies were reporting markedly stronger sales and orders. It also demonstrated firms were now in a position to invest in plant machinery and training for staff.
The NEBB has demonstrated how far fortunes have reversed since a year ago. The indicator for UK sales has risen by 30.3% over the past 12 months and the UK orders indicator has risen by 29.8%. The export side of the North East economy continues to be a driver of economic fortunes although this area of commerce had remained stronger throughout the recession.
The NEBB has only two indicators in the red – prices have tumbled on a year ago, demonstrating how companies have had to cut their margins dramatically to keep business; and, over the past quarter firms have scaled back plans to take on new staff.
The shining light in the survey is the complete about face in business confidence with companies anticipating both turnover and profits to rise this year.
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