MORE evidence has emerged that business confidence in the North-East is growing.

Two reports revealed the region's economy is strengthening and that manufacturing is leading the charge.

Industry has suffered years of depression, but according to the British Chambers of Commerce, is improving nationwide.

The positive change in fortunes echoed a Royal Bank of Scotland survey earlier this week, although that study found the region was not growing as fast as the rest of the UK.

George Cowcher, North East Chamber of Commerce chief executive, said: "The signs are encouraging, yet there is still clearly a view that the economy is fragile, as shown by last week's Samsung bombshell. Businesses feel vulnerable to outside influences over which they have little or no control.

"The two main concerns expressed by those surveyed were the tax burden and business rates.

"There is clearly a fear that taxes will continue to rise and many firms are worried about proposed legislation which will allow councils to reintroduce some form of local business rates. Until firms believe there is greater stability in the economy, confidence will not grow."

Lloyds TSB Corporate's Business in Britain survey also focused on North-East companies feeling upbeat about this year's prospects.

Firms in the region have experienced a greater rise in orders than any other part of the country, the report said, with 49 per cent reporting an increase, while 51 per cent saw a boost in sales during the past six months.