THERE'S New Year cheer for Bury firms who could be on the verge of a new, successful era.

That's the optimistic forecast from Chamber Business Connections following a survey of businesses across North Manchester involving firms in Bury, Bolton, Oldham and Rochdale.

Following a difficult 2003, particularly for manufacturers, companies have high expectations that this year will be successful. Both manufacturers and service sector firms have reported sales increases for the final quarter of last year.

Cause for further optimism stems from orders, which have increased broadly in line with sales. This indicates that the upsurge in sales is not purely a seasonal influence and that improvements in the economic climate may be sustainable.

Other key findings in the report include:

Export sales and orders are falling at a lower rate than earlier in 2003

Manufacturers and service sector firms have increased investment in plant, machinery and workforce development

Cashflow problems felt throughout last year have subsided.

But the good news is tempered by the fact that many companies are experiencing difficulties recruiting staff and identify competition as the main factor adversely affecting business development.

Chief executive of Chamber Business Connections, David Peacock said: "We are delighted with these end of year responses. We urge the Government and Bank of England to work through the coming year to ensure that business sees the full benefit of improving economic climate."

He added: "We do have concerns around price pressures for local firms that could see this wave of optimism derailed at an early stage if competition continues to affect business as it has through 2003.

"We urge the Government to put business at the front of its plans for the coming year."