Firms enduring subdued sales as overheads ease

Price pressures are easing for the region's businesses, says a new survey

- GRAEME WHITFIELD Journal editor [e-mail]

BUSINESSES in the North East are seeing an easing of price pressures but are being hit by subdued sales, an influential business survey says.

The quarterly economic survey from the North East Chamber of Commerce highlights an easing in fuel and other overhead costs, while inflationary pressures are also becoming less of a burden. Businesses who took part in the survey said that workforce capacity improved significantly this quarter though there was less positive news as future hiring intentions fell slightly.

The survey also highlighted how both UK sales and export activity declined in the last three months. That resulted in a weakening of business investment in both equipment and training, and though profitability expectations edged up 1%, they remain 12.9% lower than last year.