SMALL businesses in the North-west are remaining upbeat in spite of the threat of global recession, it is claimed.

Fewer jobs are being cut in the sector this quarter than last.

The Federation of Small Businesses, which represents more than 17,000 small firms in the region, says latest statistics also reveal that more of its members have increased their turnover.

And although manufacturers and wholesalers had experienced poor performance, they were now more optimistic about future sales than three months ago.

Policy chairman Mike Pearson said: "Although those in the tourism trade have undoubtedly suffered from the outbreak of foot and mouth this summer, it is pleasing to see that hotels and restaurants are hoping for some recovery.

"It is heartening generally that almost all sectors of small businesses in the North-west also remain upbeat as talk of a global recession reaches fever pitch."

He added: "It seems our members will not be talked into any downturn and will be doing their best to continue to be one of the fastest-growing sectors in the country -- as well as the one which provides the majority of jobs."

The survey revealed that retailers had enjoyed the most success in the last quarter and that wholesalers were the most pessimistic.