Almost a third of UK companies expect turnover to increase in the coming months, according to the British Chamber of Commerce's Monthly Business Survey.

The BCC's survey revealed that 30% of companies expect their turnover to improve by up to a quarter in the coming months - up from the 22% who predicted this rise in January's survey.

The research also shows that around half of businesses are seeing their customers take longer to pay them and 70% of firms will not be recruiting in the next quarter as they try to save money in the current economic climate.

"These results show just how tough cash flow conditions are, with half of businesses hamstrung by increasingly late payments," said David Frost, director general of the BCC.