Bradford's economy is worth at least £250 million more today than it was just five years ago, according to a new report into the city's economic performance.

Yorkshire Futures, the region's intelligence network, today claimed that total output in the Bradford district had increased by 5.4 per cent since 1998.

The data was published in the latest issue of 'Progress in the Region', the third annual report into how Yorkshire is performing against a wide range of indicators. It also emerged that the number of householders who run their own business in Bradford is 4.5 per cent above the average for Yorkshire as a whole.

And the report also highlighted a gradual improvement in the number of people in work, with unemployment falling by 5.4 per cent in Bradford since 1998, with 5,000 fewer people today claiming benefits.

The positive picture is reflected across the region which, the report claimed, had managed to withstand the worst of the economic slowdown with growing numbers of new businesses and a narrowing of the gap in GDP per head compared with the European average. But the continued struggle in manufacturing gave cause for concern, with more than 21 per cent of Bradford's workforce involved in the sector.

The report highlighted particular wards in the city that were punching above their weight in terms of business performance, with University, Undercliffe, Bingley, Keighley South and Bowling all performing above the national average for competitiveness.

Roland Clark, president of Bradford Chamber of Commerce, said the positive news about the growth should encourage people to change their perceptions.

He said: "We see the headline news which does not always look good but underneath it is true that there are a lot of small businesses and new start-ups and I think it is that area which will drive the economy.

"These growth figures should not come as a surprise. Some people will compare these figures with other areas and say they are not that high but, compared with people's perceptions, they seem good. Perceptions of the city are still a problem but hopefully when people see figures like this it will prove to them that there is a good base out there."