Consecutive rise in profits.

PROFITS at North West companies have increased for the second consecutive quarter -- the first time this has happened in five years -- according to a new study.

The survey, compiled by credit information group Experian, shows the average return on capital employed among North West firms rose from 4. 5% in the year to December 2003, to 5% in the 12 months to March 2004.

However, it also shows that profitability is still just one-third of the level seen five years ago. Of the 11 regions surveyed, the North West is still third bottom of the league. Peter Brooker, of Experian, said the rapid growth in public spending initiated by the Chancellor, Gordon Brown, has helped boost GDP in the UK.

He explained: ``The UK economy has grown in every quarter since corporate profitability began to fall away in 1999, but GDP has been boosted during this period by rapid growth in public spending. ''

Mr Brooker added: ``The financial results in the first quarter appear to offer solid evidence the economy has been improving over the last 18 months. ''

CAPTION(S):

Gordon Brown has boosted GDP