THE West Yorkshire economy is improving on the back of private sector activity, according to a survey by a Huddersfield law firm.

Private sector law practice Baxter Caulfield has published an evaluation of West Yorkshire’s business deals.

The data documents 8,000 new jobs announced and £750m of new investment in the first two months of 2011.

The Station Street firm conducted an evaluation of announcements published by companies relating to jobs, investment and new contracts.

Baxter Caulfield said the figures provided strong evidence of new innovation, private sector investment and new private sector jobs throughout the region.

It said the findings balanced the difficult news of job losses in the public sector.

It said: “The most interesting statistic is that the rate of job creation in the private sector is already in excess of the rate of job losses predicted in the public sector.”

The research records 8,000 private sector jobs announced in the first two months of 2011, some £758.33m of new investment by private sector business in the region and more than £185.61m worth of new contract wins.

West Yorkshire councils recently predicted 5,000 job cuts.

Kirklees Council said 1,500 jobs could go, Leeds Council expects more than 1,400 posts to be axed and Bradford Council could cut 1,000 posts.

Stephen Newman, senior partner at Baxter Caulfield said: “There is no doubt that the region has been through some tough economic times.

“However, our research clearly indicates that, led by the private sector, things are improving.

“The years since autumn, 2008, were bereft of investment.

“Now companies are spending some of the money they accumulated as a result of cost reduction and an investment pause.

“This is filtering through but is not hitting the headlines. The process is gradual, but discernible.”

The findings follow a survey in January by the Huddersfield-based Mid Yorkshire Chamber of Commerce, which said local companies were feeling more optimistic about their prospects – despite concerns over government cutbacks and unstable international markets