EXPORTERS in the North West face a major dilemma because of the continuing strength of the pound, according to the latest Chambers of Commerce survey for the region.

Manufacturers have to choose between squeezing their profit margins or charging more for their products than overseas competitors.

The latest quarterly survey reveals a two-speed economy in the North West with service companies and manufacturing companies selling in the UK reporting strong order books and deliveries but exporters seeing falling orders.

"Apart from the impact of the pound on exporters the North West economy enjoyed another quarter of strong performance and businesses are still confident about their prospects for the coming year," said Miles Middleton, director of the North West Chambers.

The latest survey shows a sharp rise in the number of manufacturers working at full capacity. And firms in both service and manufacturing remain confident they will not be shedding staff over the coming year.

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