THE downward trend in business confidence over the past few months has come to an end, indicating a more positive outlook for Darlington firms.

The business index for August, compiled by Clive Owen & Co business advisors, reveals an upturn in confidence, coupled with a continuing increase in employee numbers.

News that more than 200 workers at the town's Cleveland Bridge construction company have been reinstated on the £757m Wembley Stadium project was a victory for the skilled steel workers.

Other jobs created include 50 by technology company Filtronic, at Newton Aycliffe, taking the total staff there to 400 by early next year.

Clive Owen, senior partner at Clive Owen & Co, said: "In the five years since Filtronic took over the site from Fujitsu, it has increased its staff from just 20 to, when the new jobs are filled, running at full capacity.

"Interestingly, despite the expansion plans, the company announced pre-tax losses of £400,000 in the year to May 31, compared to a profit of £3.8m in the previous financial year.

"This fall in turnover but increase in staff mirrors the Index figures for Darlington businesses in general, with a further decrease in turnover for the sixth month in a row."

Mr Owen said declining turnover could be attributed to the increasing cost of goods leaving factories.

Figures from the Office of National Statistics show output prices increased by 0.5 per cent between July and August, which is the largest monthly rise for nine years.

High energy bills, in the wake of soaring oil prices, have been blamed for rising costs.

The index assesses local business activity based on figures filed by a selection of firms in and around the Darlington area over the course of the last month. The business index figures compare and assess current business performance with previous months.