The latest quarterly economic survey from the British Chambers of Commerce (BCC) reveals that manufacturers saw a good end to 2014, with rising demand both at home and abroad and a record number of companies hiring staff.

BCC director general John Longworth said it was “pleasing” to see the manufacturing sector recover, following growing signs of slowdown in recent months.

However, BCC economist David Kern (pictured) said: “In the face of weak euro-zone growth and domestic policies aimed at stabilising our public finances, a slowdown in economic growth may yet occur in 2015 and 2016, despite increased strength and optimism from businesses.

“The UK needs a long-term push to re-balance the economy towards net exports and investment, rather than relying too heavily on consumer spending to keep growth going.”

Mr Longworth warned that the UK’s economic recovery still faces “several obstacles”, intensified by the uncertainty of the upcoming General Election. He said: “Businesses are bouncing back, but their optimism may not last if political 'point scoring’ outweighs sound economic policies.

It is imperative that all political parties use the forthcoming election campaign to outline their plans to support long-term business growth and investment. If current and future Governments do the right things, there is no reason why the UK should not enjoy sustainable growth.”

The BCC survey — the largest of its kind in Britain — was conducted between 10 November and 3 December; it was based on responses from 6,904 firms.