Manufacturers in the Bradford district are bullish about the year ahead despite facing tough times and rising tax burdens.

A new survey by the district's Chamber of Commerce and Industry said many of its members were facing increasing pressure on performances.

The first quarter of the year saw manufacturers celebrate a little blue sky as sales and orders from home and abroad rose.

The service sector in the Bradford district suffered a fall in its home sales and orders - while both were hit by a reduction in investment levels.

And for those hoping for better news on the employment front later in the year they were to be disappointed - employment expectations in the service sector for the year ahead were tough.

In a survey of some of the chamber's 1,100 members, manufacturers remained resilient while expecting more difficult times ahead.

The survey showed that turnover and confidence (in the form of profit expectations) fell in the service sector but improved against the last quarter in manufacturing.

Increasing raw materials, problems with exchange rates and increasing tax burdens were the main causes for concern among businessmen.

John Pennington, President of Bradford Chamber, said members were often frustrated yet at the same time stoical over the difficulties they faced.

He said: "All in all, the end of the two-tier economy may be in sight, but that doesn't mean all is rosy in the garden.

"Instead of manufacturers being able to pick themselves up and compete in a stronger fashion than before, we now see firms in the service sector empathising with what they have been going through for the last couple of years. The Government has stressed it is keen to boost productivity among small and medium-sized firms, yet it keeps adding to the burdens that distract firms from addressing that issue."

But he said businesses in the region maintained their strength.

"It never ceases to amaze me, though, how many firms retain the determination to survive and compete by adapting to new circumstances."

The survey showed investment in training and equipment fell in manufacturing.