LANCASHIRE'S economy is starting to show signs of recovery from recent slumps, according to a report published by Lancashire County Council.

But the annual report adds the county's business sector still has a long way to go before it catches up with the rest of the country.

The latest figures show wages and manufacturing still lag behind the rest of Britain.

Financial experts say it will take years of sustained growth to bring the county up to level pegging with other regions.

The survey shows there has been a steady increase in economic and commercial activity in Lancashire.

And the news that the Eurofighter project is to finally get off the ground will prove a massive boost for Lancashire.

The report reads: "There has been a general heightening of economic activity with new industrial sites opening, workers taken on, premises expanded and increased investment inquiries.

"In spite of the positive growth characteristics in Lancashire, the county will require a sustained period of robust growth if it is to raise its pecking order in the national prosperity stakes."

And the report adds that East Lancashire continues to fall behind other parts of the county.

Wages and employment levels are the lowest in Lancashire and the report claims that there are alarming disparities between areas of the county.

Planning, industrial development and tourism chairman George Slynn has welcomed the report.

He said: "Drawing on the wealth of material about the Lancashire economy held within the county planning department, the report provides a rich source of information and analysis on a large range of economic indicators and issues.

"The report will, I hope, both inform and stimulate the debate about present and future developments in the county's economy."

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