THE region's firms are having to work harder to increase profits, a survey out today claims.

The poll of firms in the North West found 13 per cent of firms reported higher profits despite a slowdown in the growth of orders due to weak export demand.

Companies have managed to maintain profits by holding down costs and becoming more efficient.

"The outlook for the second half of the year is for a slowdown in growth," said Richard West, area director for Lloyds Bank which carried out the survey.

"That means it is vital that local businesses maintain these efficiencies to ensure they are in good shape for the predicted economic downturn."

The survey also found that 19 per cent of firms had increased their levels of investment over the past six months, up two per cent on the previous period.

And a quarter of firms increased the number of people they recruited, seven per cent higher than the national average.

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