MANUFACTURERS in the region yesterday voiced their support for the Bank of England's decision to leave interest rates unchanged.

Manufacturers' organisation EEF Northern said it believed the bank needed to wait for clearer evidence on the state of the economy, particularly consumer spending, before it changed rates.

However, regional director Alan Hall said manufacturers had been reporting weakness in the domestic market for some time, in contrast to strong export sales.

He said if the evidence pointed to a weak Christmas for consumer spending, the case for a cut in rates would be much stronger.

"Despite strong exports in the North-East, the weaker home market means manufacturing is currently treading water," he said.

"If the evidence in the coming month shows that domestic demand remains weak, reductions in interest rates are likely to come back on the agenda."

But the North-East Chamber of Commerce yesterday criticised the bank's decision.

Chief executive George Cowcher said: "Businesses in the North-East will be disappointed that the Bank of England has not taken a more radical approach to invigorating the economy.

"Strong sales over Christmas and the kernel of stability in the housing market may have encouraged the bank to keep rates as they are, although economists are warning that the wider picture still points towards a cut to 4.25 per cent.

"A drop in interest rates would help firms, particularly manufacturers and those looking to borrow money to invest in growth."