MANUFACTURING in the region is on the way back from the brink of recession, according to a report.

Average profitability in the sector which dominates East Lancashire's economy is rising.

Engineering in particular is improving with average company profitability up from 11.59 per cent in the first quarter of 1999 to 12.5 per cent in the second quarter.

The paper, print and packaging industries also showed strong improvements.

"There is considerably more confidence in the economy that at the end of last year," said Peter Brooker, of information firm Experian which compiled the report.

"Despite the continuing strength of sterling - which is sucking in more in more imports - order books are expanding, there has been a marked increase in manufacturing output, job cuts have slowed down and productivity is running at greatly improved levels.

"The recovery is subdued avoiding a return to boom and bust but if manufacturing activity continues to expand and interest rates do not rise again in the too- near future the economy could be in the healthiest state it has ever been."

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