The output of private sector businesses in the North East rose at its fastest rate for a year in February, putting Northeast businesses’ performance above the UK private sector average.
The manufacturing industry was behind the sharp growth, according to the TSB North East Business Activity Index. Employers also recruited at an above-average rate in the Northeast compared to the rest of the UK.
Martyn Kendrick, area director for Lloyds TSB Commercial in the North East, said: “Business conditions continued to improve for North East private sector companies in February, with firms benefiting from a solid increase in intakes of new work.
“Despite a slightly slower rise in new business than in January, the region outperformed the UK in terms of output growth. Manufacturing remained the principal driver of output expansion, despite a pick-up in service sector activity growth.”
Inflation figures remained high, however, driven by rising fuel costs and higher prices for raw materials.