BUSINESSES and manufacturers in Yorkshire - and especially in York - are defying the global economic slowdown, according to a new analysis.

York fares particularly well in the Yorkshire Forward report which concludes that the people of the city are among the most productive, the cleverest and the richest.

York also has one of the lowest unemployment rates, the most durable start-up ventures, and property values are continuing to rise faster than cities like Leeds

The findings are in the latest issue of Progress In The Region, the third annual report on how the Yorkshire region is performing, produced by the regional development agency on behalf of intelligence network, Yorkshire Futures. The report concludes that -

The Gross Domestic Product - or productivity levels for people in York - is 15 per cent higher than the national average and is set to grow by more than five per cent over the next three years

In spite of York's population growing by 13.8 per cent to nearly 160,000 in ten years, its unemployment rate at 1.6 per cent - just 2,000 people - remains among the lowest in the region and exactly half the national average

Survival rates of businesses trading at least three years from start-up in York and North Yorkshire at 70 per cent are well above the regional and national averages of 62.4 and 64 per cent respectively

The city's GCSE attainment is above both regional and national average, and the proportion of households in the city with no formal qualifications, at 14 per cent, compares well with the regional average of 15.5 per cent and is below the national average of 14.2 per cent

The 3.4 per cent of York households having an income of more than £50,000 a year, is one of the highest proportions regionally.

But when it comes to competitiveness the Yorkshire region as a whole is experiencing mixed fortunes.

The good news: The region is narrowing the gap in Gross Domestic Product per head compared to the European average. And business survival rates have improved since last year.

The bad news: There is a continuing loss of manufacturing jobs, low levels of business confidence and the north-south gap on growth is widening.

But latest data from the Small Business Service and the DTI suggests that in spite of a poor national performance, the manufacturing sector in the Yorkshire region did well last year when profit margins were pressed. Regional export share held up well.

Enterprise shows staged by Yorkshire Forward across the region resulted in nearly 50 new business start-ups.

A revised regional economic strategy gave greater prominence to the needs of manufacturers and new initiatives have resulted in a £2.7 million Regional Centre for Manufacturing Excellence which offers practical "hands on" experience to the region's 20,000 manufacturers.

While inward investment fell nationally and plummeted by two thirds within Yorkshire between 2001/2, the region is still a favourite for foreign investors, coming third out of 11 regions in Britain.

And the report predicts strong growth for Yorkshire Forward's five high-growth clusters - advanced engineering and metals, chemicals, biosciences, digital industries, and food and drink.

Their £10 billion contribution to the region's £65 billion economy is set to grow by a fifth within the next ten years, predicts the report.

Updated: 08:56 Tuesday, October 14, 2003