Businesses across Sheffield City Region, especially in the manufacturing sector, have a renewed optimism for growth, according to a latest survey.

More than 200 businesses from the region took part in the latest British Chambers of Commerce's Quarterly Economic Survey (QES), which looks at business confidence in the first three months of 2012.

Manufacturers showed significant increases in both UK and export sales and orders, as well as improved expectations for employment and investment in machinery as well as training. 

Meanwhile, progress in the services sector remains steady and it has not enjoyed the same amount of growth with exports sales and orders reduced. UK sales see similar levels to the final quarter of 2011, but UK orders have slightly increased, while employment expectations and investment indicate slight improvements.

What is pleasing for the manufacturing and services sector is that both are showing healthier turnover and profitability with significant increases outlined since the last quarter. 

In comparison to the BCC's survey results on a national level, Sheffield City Region fairs better in exports, UK sales and orders, employment expectations and turnover.

Richard Wright, executive director of Sheffield Chamber, said: "In many areas, the survey results are very pleasing, especially for manufacturing exports and it's great to see this region leading the nation!

"As a Chamber we have really pushed the importance of exports and international trade and this was a key theme at the recent Global Manufacturing Festival in Sheffield. It is therefore pleasing to see businesses starting to take advantage of the opportunities available to them around the world.

"March was our highest month for three years for export documentation to all areas of the world excluding Europe and the USA and the 2011/12 year is more than ten per cent up on 2010/11 so the trends are in the right direction.

"Clearly the results show that more work now needs to be done for the service sector to help get their export figures to a higher level. This will be an area as a Chamber we can focus on with members.

"These figures continue something we have been seeing in the region for some months, despite the national headlines, and we hope they lead to long-term sustainable growth for the region and the country. I would like to see a bit more attention being placed on imports however.

"It would be great if everybody could be a little more discretionary about buying a few more home produced goods and food. I'm not saying we shouldn't be importing because that's part of any free trading nation, which I fully support, but about achieving a slightly better balance to improve the trade deficit."

Commenting on the national results, John Longworth, director general of the BCC, added: "It's encouraging to see that businesses are feeling more confident at the start of 2012 than they were at the end of 2011. But that underlines the need to support and foster growth and investment by companies to ensure that the increases we have seen in the first quarter continue.

"The UK economy is still facing huge challenges and the recovery is much too slow. The UK has the potential to recover, but to achieve that the government has to set businesses free to grow."