Region in recovery mode but fears linger

The Leeds, York and North Yorkshire Chamber Quarterly Economic Survey indicates that the pace of economic growth continued to decline in the fourth quarter of 2010.

Positive results in the manufacturing sector were offset by a decline in parts of the service sector, raising concerns about the strength of the economy in 2011.

A survey from Bradford Chamber states that the local economy is facing a patchy recovery with "hurdles of resilience" in some sectors.

Overall, however, businesses quizzed in Bradford were optimistic.

Gary Williamson, the chief executive of Leeds, York and North Yorkshire Chamber of Commerce, said: "This quarter's results show some encouraging signs for the year ahead, particularly within the manufacturing sector. However, there have also been some disappointing results, particularly in regards to the service sector and overall business confidence.

"The next 12 months will be a challenge for businesses across Leeds, York and North Yorkshire, as we are still to witness the effect of the austerity measures and the VAT increase. It is vital that Government strikes the delicate balance between cutting the deficit and encouraging business growth."

Harold Robinson, Bradford Chamber's president, added: "The private sector will now need to drive growth like at no other time.

"Budget-slashing, VAT rises, the severe winter – these have all combined to check the economy against recovery from the recession; so we should all now focus attention on ensuring businesses, especially smaller ones, get the help they need to bring in more prosperity."