Confidence is growing amongst North East firms despite subdued demand, a new business survey has shown.

The latest NatWest Growth Tracker data for the region - which measures the output of the region’s manufacturing and service sectors - showed the index dipped to 49.3 in September, after a solid expansion in August (54.5). The figure points to a moderation in business activity for the first time since May.

But business confidence strengthened for the third consecutive month during September and survey managers said the degree of optimism in the North East reached the highest since July 2024.

Confidence was said to be underpinned by planned new product launches and business expansion plans, including staffing levels. However, rising costs and workers opting to change jobs meant companie

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