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Recession easing but 'not out of the woods'

The North East’s economy is “inching closer to stability”, according to a regional business group.

The latest survey from the North East Chamber of Commerce (NECC) has shown the decline in domestic sales slowing and firms are more positive about plant investment and staff retention.

The North East Business Barometer showed respondents were much more confident that turnover and profitability will improve over the next 12 months.

James Ramsbotham, NECC chief executive, said: “Overall, our survey demonstrates increasing levels of confidence among businesses but this is more a case of companies being more confident of survival rather than being outright optimistic. We are most definitely not out of the woods yet.

“The economy is still contracting but the NEBB shows that the balance is starting to swing back towards equilibrium.

However Mr Ramsbotham cautioned against celebrating too early, saying that “dark clouds” still hung over the UK economy due to the high level of public debt.

“The Government will have to reduce that debt over the coming months and years and it will face frighteningly tough decisions,” he said.

“What cannot be allowed to happen is for the bill to be dropped in the lap of businesses. The focus must be on setting out realistic priorities for public spending as opposed to damaging the private sector through excessive increases in taxation.”

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