Manufacturing is leading the growth of the North West's economy, a new study has shown.
The Purchasing Managers' Index (PMI) data for the region, released on Monday, showed that new employment levels also rose for the first time since April 2008 on the back of the growth.
But, the level of work-in-hand at companies and staff numbers continued to fall across the UK.
Steven Broomhead, chief executive of the North West Development Agency (NWDA), said: "This latest data provides encouraging pointers for the North West economy.
"It shows activity in the region has strengthened further and the level of new orders has continued to rise, whilst employment has expanded for the first time since April 2008.
"These provide positive signs for the sustainability of recovery in the region."
The research, compiled by economists Markit for the NWDA, showed firms cited rising prices in fuel and paper and plastic products as well as the increase in VAT.
It reported that strong demand showed companies were able to pass these costs onto customers.
