FIRMS are bracing for the possible economic backlash of the terrorist attacks.

Redditch Manufacturers' Association chairman Rod Laight said there was an air of 'despondency' among companies as they waited for possible knock-on effects.

Mr Laight said: "We all need to wait and see what happens on the international stage and things depend on how the US responds militarily.

"But I have to say, we're quite buoyant at the moment and there's every signal the automotive industry is also buoyant, which is good for companies in Redditch.

'If there was military action, then some of our companies supply the MOD so there might be a surge there, however unwanted it may be on a humanitarian front.'

Communications giant AT&T, which has its European base in Redditch, has introduced new security measures for staff.

Company spokesman Phil Coathup said some American staff members were on the 51st floor of one of the World Trade Center towers but all had got out before it collapsed.