NEARLY twice as many companies within Yorkshire and Humber are using the internet to buy on-line than there were six months ago - and the number selling on-line has risen by half, a major new survey carried out by Yorkshire Forward and the CBI has revealed.

The survey - the second since Yorkshire Forward and the CBI pioneered it last April - also shows that most employers already use the net for information and communication and that manufacturing industry is leading the way in using e-commerce.

And it taps into the latest economic outlook among the region's employers in order to measure the progress of the Regional Economic Strategy.

Around a third of employers are generally more optimistic about business prospects over the next six months. Although this is lower than six months ago, most expect stability.

Yorkshire Forward is also the first regional development agency to collate specific information on the way firms are delivering environmentally sustainable practices.

The survey shows that more companies are adopting greener policies with more than half (54 per cent) having taken action to reduce energy use or improve energy efficiency and a similar number (51 per cent) have taken action to reduce waste or increase recycling.

Six months ago, fewer than a fifth (18 per cent) of companies were using the internet for purchasing. That has now risen to nearly a third (33 per cent).

The number using the internet to sell products has risen from 15 per cent to 22 per cent while nearly two-fifths use it for advertising (38 per cent).

The survey shows that internet and e-mail usage is most prevalent in the manufacturing sector and also increases with firm size. However, the survey also revealed that the vast majority of firms still only use the internet for information and communication.

Graham Hall, Yorkshire Forward's chairman, said the increased use of e-commerce and environmental policies was encouraging. "Yorkshire and Humber starts from a very low base in its use of the internet and this is something we have identified as a key priority to address. We have to seize the opportunities provided by e-business by enabling companies to embrace the information revolution.

"We will be utilising these surveys to set targets for the number of firms to be trading electronically by 2005 and 2010 as part of our objective of growing the region's businesses.

"The information about the use of environmentally sustainable practices also helps us understand the key constraints and issues being faced by firms."

Penny Hemming, regional director of the CBI said: "The survey reinforces existing evidence that the single most important factor contributing to organisational competitiveness is workforce skills and an inhibitor of growth in the region is a shortage of finance."