The North West economy is holding firm as much of the UK begins to slide.
That was the conclusion of the latest business survey for the Royal Bank of Scotland which indicated a solid expansion of the region's private sector economy during May.
Philip McKinnon, economist at the Royal Bank of Scotland, said: "The North We
st private sector economy showed resilience in May while the UK economy slid back.
"Latest data showed that the economy expanded faster than any other region in May.
Six out of the 12 UK regions experienced a contraction in activity as the pace of the national economy slows.
"Employment in the region appears to be weakening with firms reporting reductions in headcount, particularly in manufacturing. "
The regional report suggested that a strong increase in services activity was the main driving force behind the latest regional expansion.
The rise in manufacturing was more subdued. Total incoming new business to the North West fell slightly in May for the first time in 35 months.
But the fall was not as steep as for the whole UK economy.
The decline was led by the manufacturing industry while the service sector registered an increase in new orders.
The manufacturing industry saw the sharpest fall of the two sectors covered by the survey, with panellists commenting on fewer orders.
The North West was one of 11 UK regions to report a reduction in the workforce in May.
The region posted a decline in employment for the first time in over two years.
Higher fuel and raw material prices were cited by manufacturers and service providers alike as the underlying causes of May's rise in input costs.
Inflation was particularly noticeable in the manufacturing sector, according to the report.
The full article contains 294 words and appears in Wigan Evening Post newspaper.
