THE region’s much-acclaimed exporters appear to have lost some lustre after lower sales punctured their progress, a new study has revealed.

Traders’ struggles, particularly of those across the service sector, have caused a second successive quarter of negativity – a situation not seen for nearly a decade.

But the findings, released in a North East England Chamber of Commerce (NEECC) quarterly economic survey, did provide some cheer, with stronger domestic sales helping firms prevail against inflationary fears, business rate concerns and lingering Brexit uncertainty.

According to the study, NEECC members are, overall, feeling more upbeat than they were at the back end of last year, though officials have warned the Government not to “derail” companies’ plans with impeding legislation going forward.

However, the situation of North-East exporters, who have long been championed for their pivotal role in ensuring the region has been the only one in the country to have a consistently positive balance of trade, is not so positive.

The survey said export sales gave a negative score for the second straight quarter, with service sector trade falling and the manufacturing industry remaining flat.

Ross Smith, NEECC director of policy, said companies had reported a mixed bag, with domestic and exporting variances matched by conflicting expectations over profits and turnover.

He said: “The first survey of 2017 has produced a much more positive set of results than those reported at the end of the previous year.

“In general, though, performance is still a little down on that seen at the start of 2016.

“The highlights are scores for domestic sales and orders – both are not only significantly higher than the previous quarter, but are the highest scores for nearly two years.

“Exports, however, are much more negative. Indeed, export sales show a negative score for the second successive quarter, the first time this has happened since 2009.

“Expectations for the year ahead shows a decrease in the score for further profitability, which perhaps reflects the uncertainty in trading conditions described by many businesses.

“Expectations of turnover, however, are up.

“Overall, the scores show that, for the time being, the region’s business community is delivering steady levels of growth.”

According to the survey, companies highlighted Brexit as a barrier to success, with immigration, rising prices and cheaper competition also causing worries.

Mike Matthews, NEECC president and managing director at Nifco UK, reiterated the organisation’s warning to the Government.

He added: “We have all got used to the word uncertainty dominating so many business conversations.

“For now, though, many businesses are performing well and they will hope critical decisions ahead by politicians won’t derail this good news.”