Switch from bright to gloomy outlook
TEESSIDE business confidence is on the wane according to new research, which appears to contradict a flurry of recent reports indicating that bosses are more optimistic than they were.
The latest Lloyds TSB Business Barometer showed that confidence in trading prospects among Northern firms slipped 8% during September with a 1% fall in the Midlands and the South.
Lloyds attributed the dip to weakening optimism among manufacturers caused by the leveling off of the upturn in global trade volumes.
However the survey is at odds with other data pointing to a swing the other way. Institute of Chartered Accountants in England and Wales (ICAEW) claims that business confidence in the region is rising at record levels on the back of major investment - with the North-east the second most confident region in England behind the South-west.
The stark contradictions call into question the validity of so-called business barometers.
In research also out this week from networking company Alibaba.co, more than one in three respondents in Middlesbrough (37%) are looking to start their own business.
Alastair Thomson, vice-chairman of the Institute of Directors North East, said the conflicting information illustrated the diversity of opinion on how well the economy was recovering from recession.
“Exporters benefiting from a low pound are likely to give a positive view of the economy; the construction industry will probably be negative.
“It depends on which cross-section of people took part in the survey.”
He said generally the economy in Tees Valley had seen a levelling off in recent months, with “things not getting better but not getting a lot worse either”.
Niche manufacturing, process expertise and digital technology would be “engines of growth” locally, he said, although the Government could help by reducing the volume of red tape.
North-east small firms lose almost £300m every year due to Government red tape, according to figures from the Forum of Private Business.
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