THE strong pound is continuing to hit profits at manufacturers in the region.

Latest figures released by business information group Experian found that the average return on capital achieved by companies in the North West was the lowest in the country.

"Average profitability among major companies in the North West is at a lower level than during the recession," said Peter Brooker of Experian.

"The slowdown in the economy as a result of lower output in many sectors, the strength of the pound and weakened exports across industry is now feeding into company profitability.

"This is affecting companies' abilities to invest and many are making plans to lay people off."

Factory output has also recorded its sharpest fall for six years with electronic and and engineering suffering the heaviest drops.

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