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North East profits dented by strong competition

STRONG competition is denting the profits of North East firms and threatening to unsettle the region’s ongoing economic resurgence, according to new data compiled by the North East Chamber of Commerce (NECC).The NECC’s North East Business Barometer shows the region’s economy is continuing to grow, but companies are not faring as well as they were at the start of the year. One of the key factors for this is increasing competition for customers in the UK market. This in turn has seen the profitability of local firms dented. The overall short-term business confidence fell from +33% to +17%, although North East firms are on average still more positive now than a couple of years ago. Isobel Robertson, NECC acting chief executive, said: “Overall, this is yet another positive picture of the North East economy. We are still witnessing growth in every sector, although we are increasingly aware that factors on the global stage are a constant threat. “The North East manufacturing sector continues to show remarkable resilience in the face of tremendous pressure from rising raw materials costs and the huge upsurge in energy prices.” The North East Business Barometer is the largest survey of its kind in this region, with questionnaires distributed to more than 4,000 NECC members.

This was posted in Bdaily's Members' News section by Ruth Mitchell .