Hopes are high for an upturn in York's economy following the worst quarterly figures for three years.

The first signs of an economic turnaround have been revealed in the latest York economic bulletin, produced by City of York Council.

The survey shows that turnover figures for businesses in the York area in the first quarter of 1999 were the worst in three years.

And employment and export figures for the first quarter of 1999 were down on the same period last year.

But there was positive news for investment in training and operating capacity, and about employers' confidence in the future.

Eighty per cent of firms were operating at 75 per cent capacity or more, five per cent higher than the last quarter of 1998.

And more firms were confident about turnover, employment levels and exports than in the last quarter of 1999.

"These aspects of the survey suggest a marked improvement relating to future confidence and hope of an upturn," the bulletin says.

"However, the key issue is to see if this is realised in the figures that emerge from the next survey in July."

Roland Harris, chief executive of York and North Yorkshire Chamber of Commerce, said today that York had generally fared better than other parts of the country, with the city benefiting from a more diverse economy nowadays.

"Despite the disappointment of the first quarter figures, there is a general mood of growing confidence and some measure of optimism," he said.

"There's a buoyancy about. There are pockets where problems continue and other areas where things are going very well."

The bulletin highlighted a number of new business developments on the York scene, including the opening of the Coffee Republic espresso bar in Market Street -only the fifth to be opened outside London - the new branch of Boots in King's Square and the new BHS Homestore at Monks Cross.

With the expanded City Screen cinema due to open in Coney Street in November and a new 350-seater conference centre planned for the Royal York Hotel, York's pull as an economic centre looks set to get stronger still.

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