Business optimism has increased in every industry sector and in all parts of the UK, the Confederation of British Industry (CBI) said today.
London companies are waking up
The announcement accompanied a survey of 4,000 businesses revealing that optimism was "high everywhere", but especially in London.
Firms in every region said they saw domestic orders increase over the past 12 months and expect the pace of growth to increase over the coming 12 months, said the CBI.
And while export orders were hit by the strength of sterling, businesses expect demand in this area to pick up over the coming year.
Firms across the country expect output to increase and it is thought that employment will take off in almost all parts of the country. Firms in London were most confident of a hiring spree.
The CBI said companies expect average prices to rise only modestly over the next year, suggesting inflation should remain under control.
Firms in London, the North East and Wales expect prices to rise the highest, while businesses in the West Midlands expect prices to be most subdued.
Douglas Godden, CBI head of economic analysis, said: "This is an encouraging survey, which suggests a broad-based recovery right across the UK.
"As far as growth in sales and production is concerned, the only fly in the ointment is the subdued growth in export demand which is clearly holding back some regions, most notably the West Midlands."
Separate government figures published today show that retail sales growth reached 0.3% in April on the back of strong performances by electrical and clothing retailers
