DESPITE growing order books Lancashire firms are struggling to increase profits, a survey out today reveals.

Although 33 per cent of companies questioned reported an increase in sales in recent months, only six per cent of firms said they had seen any growth in profits.

Increased competition means many firms have been unable to increase prices.

"The North West economy is at an interesting stage where firms can increase orders but not necessarily profits," said Richard West of Lloyd's Bank, which carried out the survey.

"Prices are having to be held steady across all markets due to greater competition and increasing uncompetitiveness due to the strength of the pound."

Almost one in five firms questioned said they expected to increase their workforce over the coming six months.

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