NORTH WEST businesses are among the least optimistic about their future sales growth, according to a survey by the Chartered Institute of Marketing.

In what is seen as a critical barometer of the mood of industry, the survey reports that companies in the region expect sales to increase by just three per cent over the next 12 months.

And for industry in East Lancashire, which has one of the highest concentrations of manufacturing activity in the UK, the position could be worse.

Within the manufacturing sector, companies operating in chemicals, electrical and engineering are all predicting that sales will fall.

The survey, specially commissioned by the Institute ahead of the General Election, shows that business confidence in the North West has dropped below the national average.

Figures for the region revealed that company bosses were sceptical about achieving their sales targets.

Two thirds of firms described their sales target as "very challenging" with only a third believing them to be "realistic".

John Hartley, Northern director of the CIM, said the survey represented a vast range of businesses collated from members and other marketing professionals.

He said: "The marketing profession is a group with leading-edge knowledge of the economic climate.

"They are the first to know how goods and services are selling and whether prices are being affected.

"As a result, the CIM survey is a critical barometer of the mood of industry and the situation in the North West."