MANUFACTURERS' order books in the North West are rising but exports continue to fall, according to the latest CBI story.

Bosses in the sector which dominates East Lancashire's economy expect domestic orders to continue to swell during the coming four months.

The CBI's quarterly regional trends report showed total orders rising in nine of the 11 UK regions since last October, with only Northern Ireland seeing a fall and the East Midland seeing little change.

Total orders and output were expected to continue rising in the next four months in all regions except Northern Ireland.

But manufacturing exporters had a more mixed time, despite the improving global economy.

Export orders improved in the southern regions, the North East and Scotland but fell further in Northern Ireland, Yorkshire, the North West, East Midlands and Wales.

However, Sudhir Junankar, CBI associate director of economic analysis, said: "The upturn in manufacturing's fortunes is fragile and could be damaged if there was another interest rate rise this week."

Profit margins were squeezed in most regions with Scotland being a notable exception.

The overall recovery across the UK did not flow through into employment prospects.

Only the North East and Yorkshire saw rising employment levels, with the North East benefiting from an upturn in the chemicals market.

Most areas continued to hold back from spending heavily in plant and machinery, as companies feared inadequate returns on their investments.

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