Mixed signals on state of economy |
| Anyone trying to draw a clear picture on the state of the regional and national economy right now could be forgiven for scratching their head somewhat.
There is plenty of gloom around, not least after the Government's announcement last week that it would be reducing the amount of support being paid to business to help them pay their energy bills. But Friday also saw the release of figures which showed that the UK economy unexpectedly grew in November, reducing the risk of the country entering a recession.
The quarterly economic survey from the North East England Chamber of Commerce is one of the best indicators of where local businesses are at, and the latest edition of that poll showed that businesses in the region are becoming increasingly worried about a range of challenges facing them in 2023, most notably energy costs and inflation, but also staff costs, taxation, shortages of workers and interest rates.
But the survey also higlighted increasing investment in plant and training plans, as well as better figures on exports, and that mix of concerns and glimmers of hope is also present in the NatWest North East Business Activity Index published today.
The index has now recorded six consecutive monthly reductions in output, while the level of new business received by companies in the North East fell for the 10th consecutive month in December. But North East firms were optimistic of growth over the course of 2023.
Both surveys have come out ahead of an important week in economic news, with the latest unemployment figures released on Tuesday, followed a day later by official statistics on inflation. |
