Firms have shown a "resurgence" of confidence in recent months although optimism was still below the levels of a year ago.

A survey of 500 business leaders revealed most believed their company was performing well, while profit expectations were improving.

The Institute of Directors said its poll showed that business confidence, performance, profitability and investment was stronger in service companies compared with those in the manufacturing sector.

Chief economist Graeme Leach said the survey was 'surprisingly upbeat', adding: "Company performance and optimism is very strong in the service sector.

"Unfortunately, manufacturing still appears to be falling behind the rest of the economy."

Published Thursday February 10, 2005

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