THE North-west economy remains stable despite the outbreak of foot and mouth and widespread reports of economic slowdown in the US, according to a survey published by Lloyds TSB Commercial.

The Business in Britain Survey, updated by Lloyds TSB Commercial twice a year, monitors the performance of middle market companies with turnovers ranging from £1 million to £100 million.

The latest results, collated in June, found profits for North-west firms were up on balance by five per cent, compared with a drop of two per cent nationally.

The survey also highlighted that more than one-fifth of the region's businesses are still experiencing cash flow problems, with late payments remaining the main source of the problem.

Turnover of more than two-thirds of North-west businesses either increased or stayed the same during the first half of this year.

Statistics also revealed that the region is the only area to show any significant improvement in order books since December.

Businesses in the region are, in turn, more confident and optimistic about the future than businesses in the other parts of the country.