NEW research has revealed that businesses in the south east including Hampshire are performing better than the national average.

The latest Business Distress Index from insolvency trade body R3 revealed 57 of businesses in the south east have reported an increase in sales volume - compared to the national average of 43 per cent.

However, the figures from the Southern Committee of R3, which brings together insolvency practitioners from local accountancy, legal and recovery firms, also show that a third of businesses in the South East (33 per cent) would be put into financial difficulty if interest rates were to increase by one per cent.

The South East has the joint second highest number of businesses reporting this in the UK, tied with the North East* and just below Northern Ireland*at 39 per cent.

Despite this, the region is also more optimistic about the economy than most of the nation, with 65 per cent saying they are more optimistic than they were three years ago, compared with an average 54 per cent of respondents across the UK.

Chairman of the Southern Committee of R3 and a partner at Quantuma in Southampton, Andrew Watling said: "It's a great sign for the South East that its businesses are outperforming the national average and it certainly is a good position to be in, which is why I believe so many of them are optimistic about the future.