Business confidence at highest level since 2007

Business confidence in the UK is at its highest level since 2007, the latest economic survey from a leading business group has suggested.

The quarterly survey from the British Chambers of Commerce (BCC) is the latest indication that the UK's economic recovery is strengthening.

The BCC said the positive news could mean growth will be stronger than forecast this year.

It now expects GDP to grow by 0.6% in the second three months of 2013.

That is significantly more positive than its previous forecast, where it predicted growth of 0.9% for the whole year.

"The UK upturn is slowly strengthening," said David Kern, the BCC's chief economist, citing strong export data as particular cause for optimism.

"The remarkable export balances show that the service sector is capable of increasing its trade surplus over time and can work to reduce our overall trade deficit," he said.

"Developing the export potential of this sector is critical to long-term prosperity."