NORTH-EAST manufacturers may lead the way on European exports, but they lag behind the rest of the UK on business confidence, a report has claimed.

A study, from manufacturers’ organisation EEF and law company DLA Piper, says firms’ resoluteness has been dented by the tougher oil and gas sector.

The region is the only one in England to have a positive balance of trade, with Sunderland’s Nissan car making plant and Teesside’s steel sector key players.

However, the EEF says North-East businesses are suffering from significantly lower domestic orders, due to the slowdown in the North Sea offshore market, which has reduced companies’ confidence to lower than anywhere else in the UK.

Liz Mayes, EEF North-East region director, said: “Manufacturers are feeling less confident than their peers in other regions and this undoubtedly reflects the strong links between North-East manufacturing and the oil and gas industry in the North Sea, which have acted as a drag on growth and optimism.

“However, there are also some bright spots, and companies are putting our region on the map.

“Almost six per cent of the UK’s manufactured exports are being made in our region and this success story enables our ingenuity, creativity and skills to be recognised around the world and particularly in Europe, our largest market by a country mile.”

The Netherlands takes a lot of North-East goods, though The Northern Echo reported earlier this year how Finland and Hungary were increasing their supplies, mainly down to demand for Sunderland-made Nissan cars.