Britain's beleaguered manufacturing sector is beginning to recover, with sales, orders and confidence bouncing back, according to the British Chambers of Commerce.

Manufacturing has been hit hard over the last year by the slowdown in the global economy, competition from cheaper imports and the strong pound.

However the BCC's survey showed manufacturing firms recorded a jump in expectations for turnover growth during the last quarter, up from a balance of plus 26 per cent last quarter - calculated by subtracting those reporting falls from those reporting a rise - to plus 47 per cent in the latest quarter.

Expectations for profits also rose, from plus 15 per cent the previous quarter to plus 35 per cent.

Service sector confidence also grew, up from plus 44 per cent to plus 57 per cent for expectations of turnover growth, while expectations of profitability rose from plus 34 per cent to plus 43 per cent.

However, employment in the manufacturing sector has weakened over the last few months, especially among smaller employers, the BCC said.

And micro-sized firms, employing up to 19 staff, have seen a slide in home sales and orders.

In the North-East, and Yorkshire the manufacturing sector, which has been in steady decline for the past year, saw a sharp improvement in order for both the home and export markets.

The service sector, however, continued to struggle.

David Lennan, director general of the British Chambers of Commerce, said: "Large manufacturers have taken a significant stride towards recovery and with confidence high we would hope small firms would soon follow suit.

"Employment and investment will tend to lag recovery and the Chancellor's Budget on Wednesday may prove a setback to business plans.

"Services continue to enjoy growth but our survey highlights inflation pressures remain benign.

"Against that backdrop the Bank of England has plenty of room to manoeuvre as it contemplates its next rate move and we would urge it not to rush into a rate rise until the benefits of global recovery are more widespread and secure."

The improved figures follow official data earlier this month showing manufacturing recorded its first improvement in output since August.

The Office for National Statistics said manufacturing output rose 0.4 per cent on a month-on-month basis during February.