BUSINESS confidence in Lancashire is growing following a period of uncertainty following the Brexit vote, according to a new survey.

Chambers of commerce countywide are reporting that while growth has not yet returned to historic levels, the service sector is improving.

Manufacturing is said to have performed strongly in the first quarter of the year, particularly where exports are concerned.

And a number of firms have reported more buoyant sales and higher orders than previous quarters.

However firms are thought to be feeling inflationary pressures, as raw material costs increases drive up prices.

The report also states: “Inflation is a key risk to the UK’s growth prospects, with businesses having to manage rising costs and the pressure to raise their prices.

“If higher inflation squeezes consumer spending as we expect, the current strength in business activity may not be enough to prevent a period of more muted economic growth.”

Thirty-nine per cent of manufacturers still expect their prices to rise, though this is down from 55 per cent previously.

The survey is carried out by Moore and Smalley Chartered Accountants on behalf of three chambers, including East Lancashire’s.