THREE new reports point to a booming UK economy - and nowhere more than in Yorkshire.

The county's economy is continuing to grow, with an increase in jobs in the region, according to April's report on business in the private sector, produced today for the Royal Bank of Scotland.

It shows new orders expanding more rapidly in Yorkshire than across the UK as a whole. A sharp rise in output prices showed companies in the region were strengthening demand for their products in both domestic and foreign markets.

Even the hard-hit manufacturing sector is seeing orders rise, according to the latest quarterly Regional Trends Survey published yesterday by the CBI and economic advisers Experian.

While 17,000 factory jobs will be lost over the latest quarter, that compares with 25,000 for each quarter last year.

While there is a national picture of strengthening order books, manufacturers in Yorkshire, the North East and the North West are outstanding, with all regions reporting a substantial upturn in orders, including exports.

Business optimism in these regions, along with Wales has improved by more than at any time in the last decade outstripping the rest of the UK. This is confirmed by the Institute of Directors (IoD) whose latest Business Opinion Survey puts UK business confidence at a four-year high.

Dennis Kaye, deputy chairman of the IoD in Yorkshire, said: "About half of our members expect employment in their company will increase this year.

"As the labour market tightens, upward pressure on wages will be offset to a varying degree by rising productivity, thereby maintaining profitability. The Business Opinion Survey shows a balance of 39 per cent of companies stating that the trend in profits is up."

Royal Bank of Scotland economist Lucy O'Carroll said: "The Yorkshire and Humberside region's performance has remained robust. A solid improvement in employment suggests that firms are becoming increasingly confident that the current upturn can be sustained into the medium term."

Updated: 11:35 Wednesday, May 12, 2004