THE region is bucking the trend in business failures, according to latest figures.

Between January and June this year, 92 North West companies called in the receivers, compared with 82 in the same period last year.

Year-on-year figures for national business failures recorded a five per cent rise but North-West figures remained largely unchanged.

"The underlying trend in the North West is still clearly downwards," said Peter Terry, head of corporate recovery in the North West for accountants KPMG.

"Although prospects remain encouraging, there is potential for an increasing failure rate among those companies in the manufacturing and service sectors which rely on sterling.

"Higher interest rates will increase the value of sterling which, in turn, will put pressure on exporters, particularly those in the manufacturing sector."

The first half figures show that manufacturing companies fared worst with 20 per cent of all failures following by business services, construction and hotel and catering.

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