INTERNET and email usage by businesses across Yorkshire has increased rapidly over the past year according to a new survey carried out by Yorkshire Forward and the CBI.

More than 70 per cent of companies in the region use email and the internet, compared with 45 per cent a year ago, with usage of email and the Internet highest in manufacturing firms and in large firms.

The majority of large firms - 86 per cent - now have a website, although this falls to 41 per cent for small firms. A third of all firms have no plans for a website.

The findings follow Yorkshire Forward's hosting of an Entrepreneurs Info Point event at the Royal Armouries Museum in Leeds offering people advice on turning a business vision into reality, one of a number of events under the umbrella of Web Working Week@Leeds, which is seeking to make local companies more knowledgeable, competitive and profitable by spreading e-business skills more widely.

This is the third regional economic survey across more than 5,000 employers throughout the region. It was conducted in March after the outbreak of foot and mouth disease, but before it had reached epidemic levels. However at that point it had not affected company expectations.

It showed that employers in the Yorkshire and Humber region are cautiously optimistic about the future and expect orders, output and employment to be higher over the coming year than in the previous year.

Nearly 40 per cent of employers in the region expected business to improve over the next six months with half of them anticipating an increase in their volume of output over the next 12 months. Employment levels have been increasing and a third of employers expect this to continue.

Profit margins which have been declining are also expected to show a marginal improvement.

However, small firms are considerably less optimistic, expecting profit margins to be squeezed over the next six months.

The CBI has forecast a cut in UK growth from 2.5 per cent to two per cent because of the combined slowdown in the US economy and the foot and mouth epidemic.

Penny Hemming, the CBI's Yorkshire and Humber director, said: "This survey supports the CBI view that although growth will slow down it won't come to a stop. We are having to pull our sails in a bit, but in the longer term the underlying strengths in the economy should pull us through."

There is also now greater awareness of the Regional Economic Strategy with just over a fifth of employers recognising it. Awareness has increased in both manufacturing and private service firms to 24 per cent in both sectors from 18 per cent and 16 per cent respectively a year ago. Small firms are also more aware - 21 per cent compared with 16 per cent a year ago.

Yorkshire Forward chairman Graham Hall said the results were encouraging but much would depend on the growing impact of foot and mouth disease and the US slowdown on the region's economy.

"The continued growing use of the Internet is particularly encouraging, given our aim of creating an e-region.

"The survey provides reliable and timely assessment of regional business opinion. However, we have yet to see the real impact of foot and mouth disease on the region's economy.

"It is also particularly encouraging that more firms are becoming aware of the Regional Economic Strategy following our efforts in engaging the business community in our activities."