Many believe the decline which led to a sharp fall in sales at the end of 2001 may have bottomed out.

Mr Sam Jones, Chairman of the North West Chambers' Economic Committee, said: "Conditions are very demanding for many North-west businesses, but there are grounds for thinking that 2002 will be a better year.

"Both the national and regional economies are in better shape than many overseas ones.

"The Commonwealth Games will give a considerable stimulus to the North-west economy and morale."

But he warned: "The region must not cut its expenditure on training, for our future prosperity relies on our workforce attaining ever higher levels of skills."