Bringing Aycliffe Business Park Together | 29
“We can look back on
2014 with a great deal of
positivity and all the signs
are that looking ahead,
businesses are confident
about the future.
”
And so the British economy roared back
into life in 2014. The UK economy now
looks to have grown 0.7% in the final
quarter of the year and by around 2.6% for
the year as a whole – the fastest among
the world’s top ten economies.
And with inflation at just 1%,
unemployment falling for the 25th month in
a row – the longest stretch since 1998 - and
basic pay growing faster than inflation for the
first time since 2009, ending a long squeeze
on real wages, things really are looking up.
So what for the North East? Optimism
in the region has turned into “genuine
economic growth”
.
The North East Chamber of Commerce’s
Policy and Research Manager, Mark
Stephenson, said: "We can look back on
2014 with a great deal of positivity and all the
signs are that looking ahead, businesses are
confident about the future.
"One year ago our economy was still
described as recovering. During 2014 we
have moved very much into growth territory
with the UK economy surpassing - for the
first time - output last reached during 2008
and finished the year on another employment
record high."
The first half of the year saw the economy
bounce back vigorously, with most official
predictions for growth falling way short
of what was to be realised. To an extent
this was to be expected. In the course of
a textbook economic recovery – if there is
such a thing – businesses will often unleash
pent up demand early in the economic cycle
as they seek to rebound from a period of
limited opportunity and move ahead of rivals
in a newly expanding market. Following on
from retrenchment, with profits being saved
to weather the downturn, businesses begin
firing investment from all barrels.
Mark added that north east businesses
have had to “fight tooth and nail to get to
where we are today, in a growing North East
economy which during 2013 grew ahead of
the national average according to the latest
figures – expanding by 3.1%."
North East wages are also expanding with
greater pace than the national average to
illustrate how our business leaders have the
growing confidence to pay more as well. The
average salary in the North East of England
has increased 11.6% to £28,515, the highest
increase in the UK, according to Adzuna’s
UK Job Market Report in December 2014.
And although, we have still some catching up
to do with the national average (which also
includes London), we are well ahead of the
national 2014 growth of 5.8% (from £32,651
in