A NEW Sussex business survey has shown a surprise result.

Sussex Enterprise's quarterly economic survey of 200 businesses in the final quarter of 1999 revealed that confidence among businesses in the county fell for the first time since 1997.

Mark Froud, director of economic research, said, "Occasionally surveys do throw up rogue results, anda number of other economic indicators all point to rising output and employment and a fall in unemployment. But we cannot afford to be complacent."

However, confidence about fut-ure turnover is still high, with 70 per cent more businesses expecting it to increase than to decline. Mr Froud said: "This is a fall of four per cent on the previous survey in September 1999.

"Although still more positive than businesses throughout the rest of the United Kingdom, it is a cause for concern."

He said despite the apparent weakening of confidence, more businesses planned to invest in equipment, training and premises than at any time in the last three years. But he claimed there was no need for the Bank of England's last 0.5 per cent rise in interest rates to 5.75 per cent.

He said: "The three interest rate rises in the last six months will penalise those companies. They are being made to pay for the rise in house prices in the South East.

"We are pressing the Government and Bank of England to find another way of addressing house price inflation - a way that will not threaten the continued growth of businesses and employment."

lResearch by KPMG Corporate Recovery reveals that, despite fears earlier last year, the total number of companies going into receivership across the UK during 1999 rose by only two per cent compared with the previous year.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.