SALES and orders for the North West service sector fell sharply during the second quarter of this year saysa survey by the North West Chambers of Commerce in conjunction with the Royal Bank of Scotland.

More service sector companies reported declining sales than the number reporting increases, a negative balance for the first time in more than five years.

And according to those behind the survey, it seems that significant elements of the sector are labouring under the longer term effects of foot and mouth disease.

Ged Keary, from the Royal Bank, said: "The survey results are disappointing, but not totally unexpected."

The survey also discloses a weakening of sales and orders in the manufacturing sector and a downward trend in terms of exports.

In line with the rest of the country, North West businesses continue to encounter problems recruiting suitable staff.