A survey by technology company HP of 1,000 SMEs shows an increase in confidence and an expectation of continued growth over the next year of up to 13%.

Confidence in the economy is also strong, with 66% of the businesses surveyed now optimistic about the year ahead.

The financial services sector has grown the most at 13% followed by manufacturing at 10% and retail at 4%.

John Walker, National Chairman of the Federation of Small Businesses has doubts however about the immediate future. He says, ‘While the overall picture suggests that businesses are bouncing back from a harsh winter, and that the economy should return to growth in the first quarter, questions still remain about the strength of recovery.’