NORTH-EAST entrepreneurs believe confidence is continuing to return to the economy, a report has revealed.

An Entrepreneurs’ Forum Business Tracker Survey, covering the second quarter of 2014, showed rising positivity across sales, profits, jobs and wages compared to last year.

It said sales saw a 59 per cent rise, with levels in export sales 28 per cent higher and actual profits up 53 per cent.

However, the survey also identified a number of challenges to growth, such as a lack of skilled staff and financial packages to suit businesses.

Nigel Mills, Entrepreneurs’ Forum chairman, said: “The outlook among entrepreneurs, who are one of the key drivers of our economy, remains positive, although we continue to see those challenges to growth around staff, transport and finance.

“It’s true there are challenges and opportunities on the economic horizon, including future devolution of powers, a General Election and the levels to which interest rates will rise over the coming months.

“However, our survey shows they are rising to those challenges.”