ENGINEERING firms are enjoying a slight improvement in their business but the industry's recovery remains fragile, according to a survey today.

Export orders have fallen for the eleventh quarter in a row, mainly because of the strength of sterling, but this has been offset by stronger domestic demand.

Jobs continue to be lost in the industry and firms are cutting back on capital spending plans, according to a poll of almost 1,700 firms by the Engineering Employers Federation which represents dozens of East Lancashire firms.

Its director general, Martin Temple, said: "Whilst the general improvement in business conditions is continuing, confidence in some industry sectors and regions remains fragile.

"Any further appreciation of sterling may well stop this gradual recovery in its tracks."

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