BUSINESS activity in the North-west remained low in February.

The picture is painted in the latest Purchasing Managers' Index for the region produced for the Royal Bank of Scotland by NTC Research.

February's contraction in activity levels again reflected subdued new order levels.

The underlying weakness of demand was blamed widely on depressed economic conditions in both domestic and export markets.

Strong competition from foreign imports was also reported to have adversely affected new business levels, in particular in the manufacturing sector.

The employment Index indicated job losses at firms in the North-west for the twenty-third consecutive month. The rate of job shedding accelerated to the steepest for a year, with employment cuts attributed to rationalisation programmes designed to trim capacity and lower costs.