Happy British businesses positive for the future

The manufacturing and service sectors have seen strong growth in recent months

Business businesses are as optimistic as they have been for more than 22 years, according to a new survey by BDO.

One sector which is feeling particularly optimistic is manufacturing, with many such firms expecting to see growth over the next two quarters. The BDO index for manufacturing hit 103.8 in January, the highest seen since 1992.

Service sector firms are also expecting good things over the next six months, with expectations for growth and hiring intentions both jumping.

In related news, the National Institute of Social & Economic Research forecast that Britain’s economy will grow by 2.5% in 2014, indicating a further strengthening of the economic recovery for both businesses and consumers alike.

This was backed up by a separate analysis by the Confederation of British Industry (CBI), which upgraded its own forecast to 2.6% from 2.4% whilst also predicting that business investment would pick up to its fastest rate since before the recession.