THE North East Chamber of Commerce (NECC) says the region's businesses have bounced back strongly from a disappointing end to 2015, with a robust performance in the first quarter of 2016.

Findings from its latest Quarterly Economic Survey (QES) shows a strong improvement in domestic markets with scores for sales and orders well above those from the last quarter.

Mike Matthews, NECC president and managing director of Nifco (UK), said there had been a strong improvement in performance among NECC members after a difficult period in late 2015.

He said: "This fact reflects the innovation, expertise and determination I see as I meet businesses around our region. In particular, it is good to see increased investment, even in challenging times, and the continued strong growth in the workforce score."

The biggest concerns in the report were export sales flatlining, concerns over cashflow and many businesses struggling to maintain prices. There is also a marked difference in the performance pattern of both the manufacturing and service sectors.

Manufacturing is seeing some recovery in export markets but a decline in domestic orders and sales – for service companies the findings are reversed, with less buoyant export sales.

Ross Smith, NECC director of policy, said: "The first survey of this year is still slightly down on the levels seen over the past two years, but represents a solid level of growth.

"I am pleased to report domestic markets have seen a strong improvement, with scores for sales and orders well above those from last quarter. However we do need to ensure our international trade is safeguarded as the export sales score has dropped even lower and is now only marginally in growth territory."

Simon Wake, Partner, Endeavour Partnership LLP, said: "The findings of the QES reflect the activity we are seeing from our clients. There is a lot of business being carried out and many firms are seeking expansion space, or looking to acquire businesses in order to grow."

Wendy Benson, director of sales and marketing, Seaham Hall, said they had invested £3m in the last two years and were continuing to do so with on-going bedroom refurbishment.

"We are finding our business is growing in every area including average room rate and occupancy levels," she said. "We are noticing the length of stay has increased with the average stay now around 2.5 nights, up from 1.5.

"The spa element is also very buoyant, in particular the corporate leisure market, where companies are treating their employees to a spa day as a reward."