MANUFACTURING is on the up, according to a survey of company directors.

The sector which dominates East Lancashire's economy is showing signs of growth despite the continued effects of the strong pound.

Nearly all the indicators in the Institute of Directors' quarterly Business Opinion Survey were positive, ranging from employment levels to export orders.

Even the beleaguered manufacturing sector showed gains despite the strength of the currency.

Orders for goods hit a two-year high, with even sterling-affected exporters seeing improvements.

But despite this, prices of goods and wage settlements remained under control, with the pace of pay rises actually falling.

In the three months to March, average pay deals were 3.95 per cent up on the year compared with 4.1 per cent in the previous quarter.