THE green shoots of recovery are beginning to emerge, say north-west businesses.

But they add a note of caution that conditions are still fragile.

The latest quarterly economic survey from the Chambers of Commerce North West reveals confidence among manufacturers and service providers is at its highest level since Q1, 2008.

Confidence in turnover among manufacturers has increased by 13%, while confidence in profitability was up by 15%.

Manufacturing orders were also up by 27%. The survey found that the biggest concerns for manufacturers were the cost of raw materials and the level of exchange rates.

The service sector did not perform as well as manufacturing, with confidence in turnover down 1% and confidence in profitability up by 2%. Mick Mayor, chairman of Chambers of Commerce North West, said: “This is the third consecutive quarter that we’ve seen an improvement in business fortunes, so there is some real cause for optimism.

“Green shoots are definitely emerging, but they could easily be killed off by the frost of new legislation or increased taxes.

“The Government mustn’t do anything that could harm this recovery.

“What businesses need now is a period of stability.”