SIZE does matter when it comes to performance by firms in greater York. The bigger the better.

That is the conclusion of the latest quarterly economic bulletin issued by the City of York Council's economic development experts.

But it adds that there is hope for smaller businesses yet.

Firms with more than 200 employees are "overwhelmingly outperforming the smaller businesses," says the bulletin.

Its analysis shows that performance is particularly strong in firms employing 50-plus people.

But these headline figures hide a more positive trend for smaller firms whose improvement rate is nonetheless much higher than the larger businesses.

For example, turnover performance for firms with fewer than

ten employees improved from a

negative balance of -22 in a July

survey to + 15 in October.

By contrast the balance for larger firms fell from + 100 to + 60 over the same period.

This reflects another conclusion by the experts, based on October survey responses of 108 firms - that business confidence in the city has dipped - in turnover, employment and exports.

Yet the consistent trend throughout the year was that turnover returns were improving and there were generally positive results in terms of investment and operating capacity.

Fewer firms may have exported - a fact underlined in a later survey by the York and North Yorkshire Chamber of Commerce (see page two) - but those involved in exporting showed the best figures since 1994.

Tourism's performance took

a downward step - surprising for

a survey covering peak months

of July - September.

In his bulletin report, Tony Bennett, assistant director for economic development for York said that the quarter to November saw contrasting fortunes for the city.

On the one hand there was highly impressive employment growth in the Science City York sector (1,000 in two years to July 2000); a new order for Thrall Europa wagonmakers generating 75 jobs; plus attraction of US company Total systems yielding 50 jobs initially.

On the other hand floods and rail disruption had continued to hamper many of the city's businesses.

An extra help line introduced by the economic development unit, the Chamber of Commerce and York Business Development Ltd to offer practical help to businesses so that they could continue trading could now be formalised within the overall emergency procedures for the future.