THE UK building sector is enjoying sustained growth -- and the North-west is leading the way.

Almost half (46 per cent) of the Federation of Master Builders members in the North-west reported an increase in business over the first three months of 2002.

And 80 per cent expected their workload to remain constant or increase in the next quarter.

The FMB expects school and hospital developments to provide much of the new work.

But builders report that a lack of skilled labour continues to pose problems.

Mr Howard Locke, FMB Regional Director, said: "It is encouraging to see that our members in the North-west are still extremely busy and expect to be so for the foreseeable future."