Economic recovery boosts North East firms

Firms in the North are continuing to feel confident as the economic improvement gains momentum, the latest The ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) has found

Commercial property on Newcastle's Quayside
Firms in the North are continuing to feel confident

Firms in the North are continuing to feel confident as the economic improvement gains momentum, the latest The ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) has found.

Confidence in the region has been on a general upward trend since the third quarter of 2012 and now stands at +45.5, well above the UK national average of +37.2.

In line with record confidence seen this quarter, companies in the North have also seen the business environment strengthen.

They predict turnover will rise by 5.2% in the next 12 months, having reported growth of 3.9% over the previous year. Increases in sales volumes and gross profits are also expected over the coming year, each by 5.3%, up from the previous year’s growth figures of 3.6% and 4.2%. Keith Proudfoot, ICAEW regional director for Northern England, said: “As we have seen with the recent GDP figures and this quarter’s BCM, the recovery is increasing momentum. As the only UK region that reports a positive balance of trade, against a backdrop of a widening trade deficit, we must continue to push to grow our exports and ensure that the improvement in the UK economy is maintained across all parts of the country.”

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