THE North-East has more manufacturing firms than last year and many have greater confidence about doing business outside the EU than their UK rivals, an industry body has revealed.

EEF says the region has in excess of 4,000 manufacturing companies employing 117,000 people.

The number of firms is 3.3 per cent higher than a year ago, with job numbers up nearly two per cent since 2010.

The EEF added the increase means manufacturing now accounts for almost 16 per cent of total North-East industrial output, with pharmaceuticals, metals and mechanical equipment the dominant sub-sectors.

However, EEF, the manufacturers’ organisation, warned company confidence was fragile, with many exporters looking anxiously at how the EU vote may affect the region’s status as the UK’s only area to have a positive balance of trade.

It said confidence levels had dipped since the Brexit result, with the North-East scoring 5.3 out of ten.

Yet, officials say the number is somewhat of a positive, with only firms in the South-East and Yorkshire bestowing greater assurance.

However, Liz Mayes, EEF North-East director, said businesses are still very cautious, with a quarter likely to review recruitment plans and nearly a third expected to reassess investment.

Companies in the region were also the most vocal about fears over EU funding and research grants.

Earlier this week, it was revealed the European Regional Development Fund, used to bring jobs and investment to declining industrial regions, had been halted indefinitely by the Government after the Brexit vote.

Ms Mayes said: “Despite some challenging times, manufacturing in our region remains a force to be reckoned with.

“But the referendum outcome provided a jolt and it’s clear we’re now on a new path with fresh challenges ahead.”