CONFIDENCE among the region's entrepreneurs in their prospects for business growth remains high despite an increasingly pessimistic outlook for the UK economy, a survey reveals.

Predictions for growth in the region are among the highest in the country, with a confidence rating of 46 out of 100, the Bank of Scotland business confidence study has said.

It also reveals that almost a fifth of small businesses in the region -18 per cent -believe they can achieve double-digit growth this year.

The survey, released today, comes only days after the UK Survey of Regional Economic Trends showed that companies in the North-East were the most optimistic about their outlook of any in England and Scotland.

The report, by the Confederation of British Industry, nine regional development agencies and Scottish Enterprise commission Experian Business Strategies, also revealed that nearly half of all companies in the region expect to see growth in domestic orders and output, while 29 per cent anticipate business will improve.

However, against the positive regional outlook, the Bank of Scotland business index reveals that only 12 per cent of North-East small businesses expect economic conditions in the UK to improve over the next year, with 80 per cent expecting them to worsen or remain the same.

Kevin Gillett, the head of Bank of Scotland Business Banking, said the region's results revealed mixed messages.

He said: "Whilst many small business owner-managers anticipate an economic downturn, the majority are confident in their own abilities to ride out any storm and prosper in the coming months.

"In fact, a significant number appear to be taking a bullish stance regarding their own growth prospects."

Development agency One NorthEast hailed the findings of the report, which surveyed 1,000 small businesses nationwide, and said such ventures had a crucial role to play in the region's economy.

A spokeswoman said: "The fact that over the next 12 months, North-East entrepreneurs expect to find it easier to run their business is another indicator that the North-East is heading in the right direction.

"We cannot underestimate the importance of small and medium-sized businesses to the continued development of the region's economy.

"Put simply, we have to ensure we provide them with the conditions to grow and develop if we are to achieve the ambitious targets outlined in the Regional Economic Strategy."