BUSINESS confidence in Darlington rose last month despite turnover falling, the business index for January indicates.

Turnover in the whole of the North-East region was down, but confidence and the number of employees rose last month.

The index, compiled by Neville Baldry, partner with Darlington-based Clive Owen and Co, chartered accountants and business advisors, shows that the economic cycle in the North-East is out of synchronisation with the rest of the UK.

A recent report released by Lloyds TSB Corporate reinforces the optimism shown by businesses in Darlington.

It states that orders and sales figures in the North-East are higher than the national average, resulting in higher business confidence, despite the continued slow pace of global economic recovery.

The North had the second highest growth in sales nationally over the past six months, beating all other regions except the South-West.

The greatest improvement nationally was seen in manufacturing, where increases in orders, sales and exports were significantly better than other industries, which correlates with the North-East's recent successes.

Mr Baldry said: "It is certainly encouraging to see that local businesses are continuing to remain positive and offer employment against a difficult global economic backdrop."

The index assesses local business activity based on figures filed by a selection of companies around the Darlington area over the course of the past month. The business index figures compare and assess current business performance with that of January 1999.