SALES and profits for small businesses in the north west are on the up.

That's the encouraging conclusion of a new report which also indicates that some of the region's newest businesses are growing fastest.

The Federation of Small Businesses (FSB) quizzed thousands of companies throughout the region for it's annual "Lifting the Barriers to Growth Survey" and discovered that 57 per cent of respondents were reporting sales growth.

Even more pleasing for the Federation, which represents around 18,000 businesses in Manchester, Cumbria, Lancashire, Cheshire and Merseyside, was the message that 48 per cent of those with increased sales had also improved profitability.

Just 21 per cent of businesses in the north west said that sales had decreased and 26 per cent of those said that profits had suffered.

There were some interesting trends contained within the report which surveyed businesses with a turnover of less than £25,000 per year to more than £5 million.

Their responses compare favourably with a similar report put together by the FSB in 2002 when less than half the business owners were able to report sales growth.