SUFFERING businesses in the Darlington area made modest job cuts last month, a survey has shown.

The Darlington Business Index for July, compiled by accountant and business advisor, Clive Owen, shows that businesses saw trade suffer and made job cuts to counter the situation.

But the index also showed that companies' confidence has risen by almost three per cent, indicating that they foresee a difficult economic future, but have taken necessary measures to steer through the problems and come out the other side with an eye on growth, development and success.

The Darlington Business Index goes against the national trend, which has seen unemployment fall by 3,100 in July, with the national total standing at 949,600, only 4,000 away from the record low reported in February.

In the North-East, where manufacturing has been hit hardest, business owners feel that consumer spending will soon slow down.

The report said that companies in the North-East are under pressure from investors to deliver share price growth and this is often achieved by putting pressure on costs, which in turn hits suppliers hard.