RISING interest rates are taking their toll on the North-East economy with firms in both the manufacturing and service sectors finding the current climate difficult, new data has revealed.
The North-East Business Barometer, the quarterly economic survey by the North-East Chamber of Commerce (NECC), showed order books for both domestic and export business were good, but long-term planning was paying the price of a succession of rate rises. Manufacturers reported better performance than the service sector in recent months.
Businesses responding to the survey indicated that investment in training was being scaled back - an area frequently cited as a major problem for the future growth of the North-East economy.
Andrew Sugden, NECC director of member relations, said: "Order books remain strong both for manufacturing and services but this is at the expense of medium and longer-term investment plans.
"This is worrying when combined with the fall in business confidence because there is a fear that businesses will get the jitters. It indicates an underlying concern of an economic slowdown."
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