Surveys from the Confederation of British Industry (CBI) and the manufacturing organisation EEF have revealed that optimism over the UK's economic recovery in growing.

The CBI has said that for firms in consumer services, the value and volume of business both rose slightly. Over the last three months, the balance for value of business was +10%, the highest since November 2007, and for volume of business was +7%, the highest since August 2007.

Overall profitability was little changed, with a balance of -2% as costs rose, though this figure was the most encouraging since November 2007 when it was +27%.

The EEF's first quarter ‘Manufacturing Outlook' report revealed a larger than expected improvement in output and orders over the past three months and a broad based return of confidence across manufacturing.

The survey found that companies are the most upbeat since the financial crisis began in mid-2007 and businesses expect to build on a better than planned first quarter with increased output and a greater order intake. In the next three months a balance of 27% of companies expect output to be up, the highest figure since the third quarter of 2007.

Revised GDP figures released last week showed the UK economy grew by 0.3% in the last three months of 2009, having previously contracted for six quarters in succession.

Although the data is generally positive both organisations suggest there are still problem areas in the economy.

"The survey shows that business activity has stabilised across the service sector, however the fortunes of the consumer services and the business and professional services differ, with firms selling to households doing slightly better over the past three months. Prices in the business and professional services sub-sector have continued to fall, reducing profits, and making conditions tougher," said Ian McCafferty, of the CBI.

"Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up."