BUSINESS in the North are proving more resilient in the face of tough economic conditions, new research suggests.

While 17% of firms in the region are making "frequent" use of their maximum overdraft facility that compares with 22% nationally.

The figures from insolvency trade body R3 also suggest that businesses based in the north are less likely to be experiencing falling profits compared to the UK average.

Andrew Walker, chair of R3 in Yorkshire and partner at Irwin Mitchell, said: "Businesses are not out of the woods yet and we are still seeing relatively high levels of companies entering formal insolvency proceedings in the region. 

"However, those in the North who have survived, do seem to be faring slightly better than those in other parts of the country, showing less of the early symptoms of distress and even some signs of growth. However, this should be viewed with caution as the first few years after a recession are traditionally difficult as it is some time before businesses can sufficiently rebuild their reserves to support expansion."

According to the research, 29% of regional businesses have enjoyed a growth in market share compared to 20% nationally.

Around one-in-ten firms have increased turnover and 7% have increased their workforces

James Reed - www.thebusinessdesk.co.uk