A survey by Doncaster Chamber of Commerce has found nearly half as many firms in the borough have recorded profits in the last three months compared to the previous quarter.

Bosses are now staging a trade fair to showcase construction firms in an attempt to secure contracts among businesses in the sector which the chamber says is one of the hardest hit by the economic downturn.

The chamber has also recently met with Doncaster Central MP and Minister for Yorkshire Rosie Winterton to discuss the economic climate and develop an action plan to provide help and advice to firms.

The Chamber of Commerce's Quarterly Economic Survey was completed by 130 of the organisation's members, the findings of which are passed to the Bank of England to help determine interest rates.

Only 22 per cent of businesses still expect profits to improve in the next three months compared with 44 per cent in the previous quarter and 68 per cent just over a year ago.

Furthermore only 22 per cent of respondents reported increased sales between July and September compared to 42 per cent of firms in the previous period.

Daniel Fell, head of policy at Doncaster Chamber of Commerce, said: "It is evident that the consequences of the economic downturn are seriously affecting our members.

"As a chamber we are very concerned about the conditions affecting the local business community and are working hard to identify ways in which we can help reduce the pain currently being experienced by some Doncaster firms."

Despite the current economic gloom and difficult trading conditions the chamber said businesses needed to focus on sales and keeping costs down.

The trade fair is being held at Doncaster Racecourse on October 27 and is aimed at helping firms of all sizes identify new ways of securing business and meeting new clients.

Any business wanting advice on how to beat the credit crunch can contact the chamber on (01302) 341000.