The Isle of Man's economy has weathered the world economic slowdown reasonably well in the past quarter.

That's the verdict of the latest quarterly economic report, covering the three months to the end of June.

E-gaming, tourism and manufacturing are among those sectors to have grown over the period.

But the situation in manufacturing and retail is less optimistic.

'Stoical' is the term used by Treasury to describe the response of the Island's economy to the worldwide upheaval.

Although unemployment fell over the quarter the number of people without a job for more than year, has risen.

In the financial services, sector pensions and insuance business in the Isle of Man remains healthy but the report predicts the banking sector may contract as institutions streamline their business.

An small upturn is expected in manufacturing before Christmas while shipping sector and the Aircraft registry are both doing well.

The climate for tourism is said to be volatile with the impact of swine flu yet to be seen, but the report says results are encouraging.

On the plus side, it seems house prices are holding up well, with the average cost of a house in the Island slightly up on a year ago to more than ?281,000.

The report can see no evidence any government department is on course to overspend but concedes some will find it very difficult to stay within budget by the end of the year.