North East’s ‘positive’ start

Apr 11 2008 by Karen Dent, The Journal

THE cut in rates came on the day a new survey by the North East Chamber of Commerce (NECC) said the regional economy has made a positive start to the year.

The NECC’s quarterly North East Business Barometer echoes the findings of The Journal’s Business Barometer, published in conjunction with Newcastle Business School earlier this week.

Both surveys found that despite the credit crunch and fears of a global slowdown, the North East’s business community was looking ahead with a fair amount of confidence.

The NECC’s statistics pointed to a drop in UK sales and orders during the first quarter of the year but found export sales and orders increased. Profitability and turnover also rose.

However, businesses were concerned about high energy prices and inflation, and urged the Government and the Bank of England to tackle these issues.

Ross Smith, head of policy and research at NECC, said: “Despite rising commodity prices, weakened growth in the eurozone and US, and reduced demand, North East businesses remain confident about the future.”

Even if commodity prices remain at their current high levels the Bank of England believes that inflation will fall back later this year.