Trade tensions weighing heavily on confidence

THE North East private sector returned to growth in June but worries remain over the health of the economy, a new survey suggests.

- GRAEME WHITFIELD

The latest NatWest Growth Tracker which measures change in the region's manufacturing and service sectors increased from a score of 48.8 in May to 51.0 in June, with ratings above 50 denoting growth. Businesses in the region recorded a solid increase in order book volumes and there was a further easing in inflationary pressures.

But the survey returned a mixed picture, with companies opting to cut staffing levels and heightened tensions on global trade contributing to the lowest level of business confidence in more than two and a half years. Of the 12 UK regions and nations measured by Nat-West, the North East displayed the lowest level of confidence.