Business importers and exporters' confidence in the economy increased strongly in July, as positive economic data fuelled hopes for a return to strong economic growth, according to The Travelex Confidence Index (TCI).

The TCI jumped 12 points in July to 116, from 104 in June. Analysts said the strong gains were driven by Quarter 2's GDP figure, as it showed the UK grew at its fastest pace in four years.

David Cameron's overseas trade mission also bolstered confidence, as nearly half of those interviewed (44%) expressed increased confidence in the Coalition's trade policies, compared to 35% in March.

"July's sharper-than-expected increase in confidence will help improve importer and exporter morale and allay concerns about the medium to longer term growth outlook," said Paddy Earnshaw, Director of Customer Relations at Travelex Global Business Payments.

"It is particularly encouraging to see the new government's international trade efforts injecting confidence into the UK's SME importers and exporters."