North East sees record rise in business

Mar 9 2010 by Iain Laing, The Journal

THE North East saw a record rise in the rate at which companies won new business last month, according to a new report.

But unemployment in the private sector also continued to rise in February, according to the Purchasing Managers Index (PMI) survey commissoned by regional development agencies.

The national survey showed widespread rise in output and new contracts which it said was further evidence that the UK was pulling out of recession this year.

And although it found there was some jobs growth in London, the North West and the West Midlands there was a further fall in the North East. But this region did see a continuing rise in the amount of business won by firms last month, albeit at a slower rate than in January.

The survey showed total new business rising for the eighth month running and at the fastest rate overall since the survey began in 2001.

Allan Little, principal economist at regional development agency One North East, said: “The latest survey reflects the wider national and regional evidence, indicating that both the manufacturing and service sectors have left the recession and returned to growth. The recovery phase could well be fragile initially, but we are encouraged that the balance of businesses reported stronger growth in new and incoming orders.”

But Sarah Green, regional director of CBI North East, said that while the economy was starting to grow in parts some increase in output may be misleading.

She said that some of the increase in production and orders may follow on from companies running down their stock during the recession.