YORK'S economy is proving remarkably resilient in the face of international difficulties, the latest economic bulletin revealed today.

Almost half of businesses surveyed by City of York Council's economic development group reported a rise in turnover in the final quarter of 2002.

Only 17 per cent reported a fall, making these the best final quarter figures for five years.

"These are very positive results at such a difficult time," says the bulletin.

Businesses also expressed confidence about future turnover - the best since 1997 - although the tourism sector suffered a fall in confidence.

Staffing levels improved in the last quarter of 2002.

One in four firms reported an increase in the number of staff they employed, and only a tenth reporting a decline.

The report warns that nationally, business confidence is less strong than it was three months ago, and the York figures for the first quarter of 2003 show a possible levelling off.

"Even with the caveat regarding expectations for the first quarter of the year, these indicators suggest that the York economy is showing a positive degree of resilience in the face of wider uncertainty," said Tony Bennett, the council's assistant director, economic development.

"Certainly, the economy seems to be in a stronger position to withstand the current downturn."

However, he warned that close monitoring would be needed to assess the impact of continuing uncertainty in the stock markets and the war in Iraq.

Updated: 08:57 Tuesday, April 15, 2003