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PRIVACY
Economic Development

North East economy 'heading in right direction', Chamber survey suggests

The quarterly survey from the North East Chamber of Commerce shows improvements in most areas

A recent view of the Angel of the North surrounded by a blanket of snow, January 2023(Image: Craig Connor/ChronicleLive)

A survey of businesses in the North East suggests the regional economy is “heading in the right direction”, a leading business group has said.

The quarterly economic survey from the North East Chamber of Commerce points to growing confidence among businesses about their future profitability and turnover, though concerns around interest rates, inflation and staff costs remain.

Measures for º£½ÇÊÓÆµ sales, exports and investment have all risen over the last quarter, though overseas sales and orders have still not recovered to the levels seen this time last year. And charts showing five-year trends for sales, investment and job numbers in the North East show all three areas have shown little or no growth since 2019.

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The survey, conducted in November, shows that 50% of firms in the North East are still reporting staffing shortages, something the Chamber said had been a “a consistent picture over the last 24 months.”

The survey says: “This quarter’s results show modest increases across most key indicators, with some sharp up-ticks in areas relating to staff/staffing. Q4 2023 therefore reflects a positive shift in momentum.

“This demonstrates some sense of optimism. However, businesses who report operating at full capacity show a 4.9% increase on the previous quarter, a total of 4.1%.