Inflation continues to put pressure on North East businesses, research by the region's largest business group has shown.
The North East England Chamber of Commerce's latest Quarterly Economic Survey - which closed before the Government's recent mini budget - found that while overall business conditions had improved slightly on quarter two, firms reported utilities, labour and fuel costs overtaking recruitment difficulties as their biggest challenges. Cashflow remained depressed at -17.4% and while that was positively driving prices, it was hampering future profitability for services and manufacturing businesses.
Amid a continued picture of headwinds, inflation was singled out as a major worry for 89.3% of respondents, while energy prices followed at 88.2% and rising staff outlay at 73%. Despite the challenges there was evidence to suggest positive change, including UK sales, export sales and export orders for manufacturers all moving into positive territory.
