Posted on 12-01-2010 at 06:00
The North East Chamber of Commerce has released its quarterly economic survey which shows businesses performed better here and abroad in the last quarter of 2009.
But despite the good news fears have been raised that the recovery could be damaged if local and national government assumes everything is back to normal.
With a large number of public sector jobs, in councils and hospitals and Government offices, growth could be hit as ministers look to make savage spending cuts this year.
Council leaders have already earmarked millions of pounds worth of cuts which will see hundreds more put out of work in the coming months.
James Ramsbotham, chief executive at the North East Chamber of Commerce, believes the recovery could be damaged if the Government does not continue with its initiatives in the region.
He said: "Our latest data is a fantastic tonic as we start 2010. However, we cannot afford to get carried away.
"We will emerge from this recession battle hardened and in better shape than before to capitalise on improving economic conditions. However, they still need a massive amount of support from the Government.
"Now is not the time to pull the plug on the range of initiatives that have been introduced to bring the UK economy out of intensive care."
The Chamber’s figures were put together before Corus announced plans to mothball the Teesside Cast Products plant in Tees Valley.
Last night Blaydon MP Dave Anderson, who sits on the regional select committee, said it was important the Government renewed its commitment to manufacturing in light of the Corus blow.
He added: "One of the key things we will be pushing for is for sectors such as the steel industry to be taken far more seriously now.
"We’ll be meeting with steel bosses on Friday as part of a special hearing of the committee and then taking their case to Whitehall.
"Because I have seen for myself just talking to people in Blaydon that things seem to be getting better, but we could so easily lose that growth if we do not act now to offer support to the manufacturing sector."
Tyneside has suffered heavily in the recession, with the region’s unemployment peaking at 121,000 in November.
And with a 9.5% unemployment rate the North East still has one of the highest unemployment rates in the country.
Simon Lenney, commercial director for Barclays in the North East, helped put together the business survey.
The bank boss said: "At Barclays, we’ve seen at first hand the resilience of businesses in the region over the past 18 months, and we’re delighted to witness the growing optimism we see amongst our clients reflected in the North East Business Barometer.
"Increasing our commercial banking market share in the North East is a key focus for Barclays in 2010, as the bank also approaches the New Year with renewed confidence in the region’s business outlook."
2009 started on a low-note as Nissan announced it would be cutting 1,200 jobs at its Washington factory after a "dramatic decline" in demand. And that bad news spread as Tyneside saw jobs go at companies from defence manufacturer BAE Systems to tea company Twinings.
The depressing news was set alongside repeated claims from bosses at One North East that a jobs boom would eventually come to the Tyne as green energy jobs start to appear.
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