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Business confidence in the North decidely gloomy

CONFIDENCE in the North of England is still lower than in the rest of the UK, according to a new report.

The survey of local businesses conducted by the ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) has recorded a Confidence Index score of 8.8 points - which places the region 3.1 points below the UK as a whole.

Joe McLean, partner at Grant Thornton’s Newcastle office, said: “On the surface the latest statistics appear alarming for the North East, showing that confidence amongst business leaders in the area is falling at a rapid pace.”

However we must take into account the period which the figures cover, a time when there was uncertainty regarding the public sector due to the Comprehensive Spending Review in October and heightened instability in the Euro zone.“

Other findings show that over the year to Q4 2010 firms in Northern England reported an improvement in key financial performance indicators.

Turnover increased by 4.5% compared to an increase of 1.7% over the year to Q3 2010, while growth in gross profit improved from 0.9% to 3.9% over the same period.

Sales volumes also grew at a faster rate over the year to Q4: 4.1% compared to 1.8% in the year to Q3. Furthermore, the rate of growth for these measures in Northern England exceeded that of the UK as a whole this quarter.

Challenges related to finance persist for Northern England firms, however.

Around a third of firms in the region (32%) report late payment from customers as a greater challenge to performance than a year ago.

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