A NEW economic survey shows that conditions are getting worse for North-west businesses.

The latest PMI Report from The Royal Bank of Scotland reveals a fall in demand and activity levels during November.

Also, panel members quizzed said profit margins continued to be placed under pressure and they had been forced to cut jobs again.

Sharon McDowall, Senior Economist at The Royal Bank of Scotland, said: "The weak global environment, economic uncertainty and competitive pressures continue to dampen the performance of companies in the North-west, which recorded a fall in both new business and activity levels in November. However, panel members are taking encouraging steps to boost productivity and control costs, which should make them well placed to benefit once the

external revival is underway."

The main findings of the November survey were:

North-west manufacturing and service companies reported their first decline in activity levels for ten months -- a situation in stark contrast to the rest of the UK where, on average, activity levels were seen to be rising at a solid pace.

Panel members commented that the fall in activity generally emanated from a lack of business confidence and investment, which was also reflected in

a decline in levels of incoming new business in November.

The fall in new orders seen during the month was the first since August, with panellists again reporting that strong competition, mainly from Europe, had also contributed to the contraction of incoming new business in November.

Employment levels in the region continued to be cut as evidence of spare capacity among companies remained widespread.

Average input costs continued to increase at a rate above the UK average --panel members reported higher commodity prices.

Respondents said strong competition had again had an adverse effect on their pricing power.