Business confidence in the North East has increased to +19%, as the UK headline index dropped to its lowest level in 13 years, but remains well ahead of Europe.

The latest Accenture / S&P Global UK Business Outlook found that, at +18%, the net balance of manufacturing and service sector firms expecting activity to increase over the next 12 months is the lowest recorded since 2009. The latest results compared with net balances of +28% in June and +56% in February.

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Allan King, North East lead for Accenture, said: “North East businesses face the prospect of a tough winter ahead, so it’s understandable that business confidence has been shaken. However, it is promising to see employers in the region remain optimistic about hiring in the next 12 months and investing in skills and capital projects.

"Even during these hard times, businesses need to keep the long term in mind and plan for the next growth cycle to remain competitive. They can do this by seeking to reinvent their operations across the whole enterprise, invest in new technologies and embed sustainability in everything they do.”

There are signs of resilience in the regional job market, with North East firms expecting employment to rise (+7%), increasing by 6 percentage points from June.

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