According to the latest Business Trends report from the BDO business-advisory group (www.bdo.co.uk), UK companies are experiencing “a summer of success”.

The BDO Output Index rose to 104.4 in July, up from 104.1 the previous month (a figure above 100 indicates growth).

Peter Hemington, a partner at BDO, said that businesses have reacted positively to the political stability that has followed the General Election, and that this increased certainty has encouraged businesses to invest and focus on their long-term prospects.

He added: “Political certainty has bolstered short-term business confidence. The result is a thriving economy, despite global economic unrest.

“However, as the UK’s success continues to exceed other markets, the strong pound will make it harder for our exporters — particularly manufacturers — to find customers.

“We can’t let confidence tip over into complacency, so keeping Britain competitive should be a Government priority.”