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"Despite gloomy media headlines in recent months, our economic survey once again shows increased business confidence," John Longworth, director general of the BCC, said.
"It is incredibly encouraging to see export deliveries reach record levels, and the upturn in employment balances is reassuring in spite of the risks at home and abroad," he added.
The survey is likely to boost U.K. finance minister George Osborne who has faced scathing criticism for his austerity policies from the International Monetary Fund and some analysts.
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The report comes a day after the release of the June purchasing managers' index (PMI) for the manufacturing sector, which rose to 52.5 from 51.5 in May. Meanwhile, mortgage loan approvals for house purchases hit a 41-month high in May.
Last week, revisions to GDP data from the Office of National Statistics showed U.K. economic output was flat in the first quarter of 2012, instead of previous estimates of a contraction of 0.1 percent. That data meant the U.K. did not suffer a double-dip recession last year, as was previously forecast.