Chamber sees recovery signs.

Byline: HENRYK ZIENTEK

BUSINESS confidence has strengthened among companies in Huddersfield, says a new survey.

But the Lockwood-based Mid Yorkshire Chamber of Commerce said the overall picture for member firms remained "weak" by historical standards.

The quarterly survey of member firms across Kirklees, Calderdale and Wakefield showed an increase in home and export sales and orders during the second quarter of 2009.

There was also an increase in the number of companies predicting higher turnover and profit as well as "encouraging" increases in employment growth.

Inflation and competition had replaced pricing issues as the main concern among the region's employers.

Steven Leigh, senior policy adviser for the chamber said: "While a number of key balances have improved, many are still in negative territory and by historical standards remain weak.

"However, the pleasing improvement in business confidence indicators gives cause for some optimism."

Mr Leigh said the survey suggested that the service sector was recovering from recession more quickly than the manufacturing sector, which remained a major concern.

Mr Leigh said: "It is to be hoped that improvements will continue throughout the next quarter - and that wealth-creating businesses will be given full support by government in driving forward a sustainable recovery from recession.

"These signs of fragile improvements in the economy are most encouraging, but recent gains can only be sustained by nurturing business through these continuing difficult times."

CAPTION(S):

* ENCOURAGING: Steven Leigh is optimistic