BUSINESS confidence in the north remains low, according to new statistics.

Turnover and sales growth reportedly lost momentum a year ago and there has been no rebound since.

The news comes from the latest Institute of Chartered Accountants in England and Wales (ICAEW) and Grant Thornton UK Business Confidence Monitor (BCM).

A business confidence index score of +6.5 was recorded in the north this quarter, declining from +20.8 during the same period a year ago.

Companies in northern England report a rise of just 1.5 per cent in domestic sales on a year earlier, compared with 3.8 per cent for the 12 month period to the second quarter of 2015.

Despite this, total salary costs and headcounts have increased by 2.4% over the past 12 months.

Keith Proudfoot, ICAEW Regional Director said: "Business Confidence is fragile and it is not surprising that confidence in the North remains low, as wider uncertainties prevail.

"The upcoming EU Referendum is likely to be impacting confidence in the region and the next quarter could certainly be decisive in terms of a return to a trend for growth and the economy going forward."

MORE TOP STORIES:

The business confidence index is calculated from the responses to the question of: 'Overall, how would you describe your confidence in the economic prospects facing your business over the next 12 months, compared to the previous 12 months?'

A score was applied to each response as shown below, and an average score calculated with +100 being 'much more confident' and -100 being 'much less confident'.

"Steady employment growth, alongside robust growth in capital investment, suggests companies in Northern England have sought to maintain capacity, reflecting expectations that sales and profit growth will rebound," Mr Proudfood said. "Nonetheless, companies’ expectations for future employment growth as well as capital investment increases are set for a downward adjustment, with slower growth in the year ahead compared to the previous 12 months."