Sussex has moved up in the league of economic expansion for the South-East.

Latest figures show growth in West Sussex is well above the national average, while East Sussex has moved from below average to the middle of the table.

Economic information group Business Strategies puts the South-East in second spot, behind Northern Ireland, as the fastest growing region.

Growth in West Sussex during the next five years is expected to reach an average of 3.4 per cent and in East Sussex, 2.7 per cent.

This takes into account the slowdown in the US economy but the figures are likely to be revised once the full effect of the foot-and-mouth crisis has been taken into account.

The spokeswoman for Business Strategies Sussex, Jane Coupland, said: "This improve-ment comes from strong growth in financial and business services, transport and communications, alongside sustained growth in engineering."

Mrs Coupland, a senior analyst with the organisation, said businesses in Brighton and Hove and many parts of the South-East suffered "severe impact" from disruption to rail services after speed restrictions had been imposed following the Hatfield crash.

"The most badly hit industries were the postal service, wholesale distribution, banking and finance and motor vehicle distribution. All these are strongly represented in the South-East, suggesting the region has been disproportionately affected."

The report adds growth in financial and business services, transport and distribution, especially retailing and hotels and catering, will remain strong this year. But if foot-and-mouth is not on the wane by September, 0.3 per cent should be deducted from the growth figures.

Mrs Coupland said: "Employment in the South-East could rise by about 15,000 this year, followed by a further 60,000 the year after.

"Growth will be driven by gains in service sector employment, while the long-term decline in manufacturing is likely to slow down."