Manufacturers in Bradford suffered a downturn in business during the final quarter of last year.

It contrasted with the situation earlier in the year when many firms reported improved sales figures and fuller order books.

However, between October and December, sales dropped in both domestic and foreign markets.

Despite that the latest quarterly economic survey by Bradford Chamber of Commerce, which was published today, showed that business confidence as a whole remained steady and that profit expectations were still relatively good at the time of the survey.

However, the Chamber admitted many manufacturers, who make up 37 per cent of its 1,100 members, would be disappointed by this month's unexpected interest rate rise and news that the rate of inflation had reached a 12-year high.

Elsewhere, investment fell slightly in machinery but increased in personnel.

Chamber president Richard Wightman said: "Bradford's economy remains in a relatively strong position, despite this setback for manufacturers.

"The fieldwork was done before that latest rise in interest rates, so that will have disappointed many, but local industry and commerce looks set for a good future.

"Many firms are managing to attract new business and strengthen their position in the market at a time when there are growing pressures from new areas. With the added backdrop of economic regeneration developments due to quicken in pace this year, I'm confident that our business community will continue to prosper." Mr Wightman also called upon the Bank of England's Monetary Policy Committee to reduce interest rates as soon as possible.

In the service sector, sales and orders both improved in domestic and foreign markets, with investment also showing a boost.

Although turnover held steady and expected fall in employment next quarter, confidence remained strong.

Chamber chief executive Sandy Needham said: "The survey gives a good portrayal of how lots of companies in the district are doing over successive quarters.

"The results are fed into the Bank of England, as well as other key decision-makers such as Yorkshire Forward and our MPs to help with policy development."

e-mail: mark.casci@bradford.newsquest.co.uk