October 23, 2009

The region encompassing the north-west, Yorkshire and Humber entered recession after the south and is likely to pull out after it too, writes Andrew Bounds.At 20 per cent of regional gross domestic product, manufacturing accounts for a higher proportion of the economy than in the country as a whole, and that sector has been hit hard. While the region's large motor industry, which employs some 43,000 people in the north-west alone, has stabilised, the important aerospace sector, is in less robust health.

Regeneration of former industrial sites has been led by retail, housing, office and leisure developments. As those sectors have stumbled, many projects are stalling for lack of finance.The region hosts many private companies, many of which are conservatively managed with low borrowings, and that has cushioned the impact of the downturn.