PROFITS at local firms have fallen to their lowest level for a year because of the strong pound and weak exports, a survey out today reveals.
The latest Corporate Health Check survey published by Experian found that the average return on capital achieved by firms in the region fell to 8.49 per cent in the last quarter of 1997.
The survey results come in the same week as two East Lancashire firms, Scapa-Scandia and Chapman Industries, blamed problems with the strength of sterling for job losses.
"As exports have been hit some companies in the North West have been switching production to meet domestic demand," said Peter Brooker of Experian.
"But the overall picture has deteriorated further since the last survey. Export volumes and orders are falling and the outlook for profitability in 1998 looks bleak."
Engineering, electronics and textiles firms have been hardest hit by the problems in overseas markets.
The North West is now second only to Wales at the bottom of the regional league table for company profitability.
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