CONFIDENCE is on the way back for local firms, according to the latest North West Chambers of Commerce survey.

The first quarter's results show particular upturns in the service and retail sectors.

And the slowdown in the growth of export orders appears to have almost halted, with many firms reporting overseas sales performing better than domestic orders.

There is also good news on the employment front with both manufacturing and service sectors expected to take on additional employees.

Despite the growing confidence, investment intentions show no sign of increasing.

The only blackspot in the survey is the indication of increased pressures on cash flow.

"The trends are on the whole very welcome," said Robert Hough, chairman of the North West Chambers Economic Committee.

"The retail sector in particular is showing signs of continuing improvement and optimism.

"In the light of this trend, despite the fact that interest rates are still a key issue to many businesses in the North West, we would not recommend any adjustments at the present time."

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