The director general of BCC John Longworth says: “It is a fantastic start to the New Year with a very positive quarterly survey. Confidence is high and our members are resolute in their determination to take the recovery from being good to being truly great.

“Firms across the board believe they can create jobs, invest, and export. It is especially pleasing that the spurt in the manufacturing has proven not to be a fluke, which demonstrates the dynamism of our small, high value, manufacturing sector. But businesses have major ambitions, and to be able to meet them, more support must be provided.

“Cash flow continues to be an ongoing concern, and may hold businesses back from expanding to meet the growing levels of demand. We must give companies the opportunity to get the finance they need to go out and trade with the world if we are to succeed in rebalancing the economy.

“As the 2015 General Election looms ever closer, the government cannot afford to get distracted by short-term political infighting. Long-term growth strategies must be delivered with a strong national consensus, particularly around the infrastructure investments that the country sorely needs. Only then will we have an environment that fosters enterprise and an economy that meets its true potential.”

The organisation, which includes many sign-making firms as members within its 53 accredited chambers, employing some five million workers across the UK, is also concerned about the threat of an interest rate rise.

David Kern, chief economist at the British Chambers of Commerce of the BCC says: “While the decision to hold interest rates and QE (quantitative easing) was widely expected, it is concerning that there is increased clamour in the media and among some city analysts for an early increase in interest rates. We believe that the MPC’s (Monetary Policy Committee) forward guidance strategy continues to be beneficial for UK businesses. Although economic growth is stronger than most people envisaged a few months ago, there is still no evidence that the time is ripe to tighten policy, given that earnings are below one percent and inflation at just over two percent.

“Although the MPC has not issued an accompanying statement, it has said in the past that the seven percent threshold is not a target and is unlikely to trigger early interest rate rises. Businesses are also concerned with inflation, so the MPC must remain committed to its two percent target. It is important to avoid premature steps that could snuff out the recovery before it is on firmer ground.”

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