MANUFACTURERS have shrugged off signs of a slowdown in UK growth to report healthier domestic and export orders at the end of 2014.

The British Chambers of Commerce (BCC) said its quarterly economic survey showed businesses were well placed to grow this year, although it warned this may not last if "political point scoring" dominated the election campaign.

John Longworth, BCC director general, said it was pleasing to see the manufacturing sector bounce back.

The balance of industrial firms reporting an increase in domestic sales rose to plus 36 per cent from 23 per cent in the previous quarter, with the domestic orders balance up to 38 per cent and export sales up by ten percentage points to plus 26 per cent.

In the services sector, domestic and export sales balances rose in the quarter after stagnating over the previous three months.

The survey also found an all-time high number of businesses set out to recruit staff in the period, with the balance of manufacturing firms operating at full capacity up by one point to plus 41 per cent and the figure for service firms in line with the third quarter at plus 46 per cent.

The BCC said the latest results supported its view that annual UK growth would stabilise above two per cent.

However, Mr Longworth added: "The UK's economic recovery still faces several obstacles, intensified by the uncertainty of the upcoming general election.

"Businesses are bouncing back, but their optimism may not last if political point scoring outweighs sound economic policies.

"It is imperative all political parties use the forthcoming election campaign to outline their plans to support long-term business growth and investment."

The BCC's findings contrast with CIPS/Markit surveys, where a combined output reading from the construction, manufacturing and services sectors fell from 57.7 in November to 55.4, its lowest since May 2013.