Businesses across the North East are feeling the benefits of the continuing economic recovery more clearly than rivals elsewhere the UK, according to a report.
The latest edition of insolvency trade body R3’s Business Distress Index showed that a record 65% of firms in the North East, Yorkshire and Humberside are showing at least one of the five key indicators of growth that it measures.
The firm’s Business Distress Index reports regularly on the successes and difficulties of hundreds of companies across the UK, with the latest survey tracking five key indicators – investment in new equipment, increased sales volume, business expansion, increased profits and growing market share – since March 2012.
For all of the first four of these indicators, the region has on average fared better over the last four months than the wider UK as a whole.
Two-fifths of the regional firms surveyed said they were investing in new equipment and experiencing increased sales volumes, compared to national averages of 37% and 34% respectively, while the 42% experiencing increased profits is more than a third ahead of the UK-wide equivalent of 30%.
A total of 38% of North East firms said they were expanding, as opposed to 28% across the UK, while the numbers for growing market share were almost the same, on 27% and 28% respectively.