Brexit fears hit exports in region

The biggest independent survey of business confidence in the North East has shown a dramatic fall in exporting to the lowest level for a decade.

North East England Chamber of Commerce’s Quarterly Economic Survey indicates that export sales have fell back into negative territory in the third quarter of the year – indicating a contraction in the market – and a decline in the service sector.

Looking ahead, the organisation says it is the manufacturing sector which provides the biggest cause for concern, with export orders and cash flow showing negative indicators because of uncertainty over Brexit

Survey respondents highlighted uncertainties resulting in reduced business confidence and concerns surrounding future economic conditions,uncertaintiesover tariffsandthepotentialimpact on exports as well as Brexit related delays to investment.

Chamber president Lesley Moody said: “One big story emergesfromthisquarter’sresults,namelythedeterioration in firms’ export performance.

“For a region that prides itselfonitsexportperformance, this is deeply troubling.

“Clearly the uncertainty around Brexit is having an impact on our businesses and our economy. This quarter sees scores for export orders overthenextthreemonthsfall to their lowest level since the middle of 2009 while cashflow continues to be a major challenge for many firms.”

She added: “With the October 31 Brexit deadline looming, these results only serve to underline the need for a Brexit outcome which preserves our trading relationship with our biggest single overseas market.”