NE growth continues despite health survey dip
A number of key indicators have dropped in the North East Chamber of Commerce's (NECC) latest Quarterly Economic Survey (QES), although business confidence and growth in the region remain strong, according to its policy and research manager.
The QES is a trends survey that shows the health and direction of the North East economy measured across 11 separate indicators, ten of which dropped from the previous quarter.
UK sales, UK orders, export sales, export orders, cashflow, future turnover and current workforce are just some of the indicators which fell.
Year-on-year indicators were slightly better, however, with only four dropping – export sales, export orders, plant investment plans and cashflow.
The QES shows confidence remains in the manufacturing and service sectors, but at lower levels than those seen in recent quarters.
NECC policy and research manager Mark Stephenson said: "In spite of several key indicators dipping in Q3, North East business confidence continues and growth is still incredibly strong by the standards set in the last five years.
"However, more firms are reporting capacity constraints and while QES indicator levels remain historically strong new found growth must not be taken for granted.
"To sustain our positive momentum we require progress on key infrastructure projects, we need the major political parties to unveil pro-business policies in the run-up to the general election and greater devolved powers for the North East as the government looks to agree a devolution settlement with Scotland."
NECC president David Laws added: "Our economy is growing, as is our workforce, yet as a region we still have an unacceptable rate of unemployment, even with record numbers of people in jobs.
"It has been a turbulent month or two. For a while the future of the UK was in doubt and regardless of which side of that particular debate one landed on it was clear that the uncertainty it generated wasn't helpful for businesses."