Companies in Coventry and Warwickshire believe the economic recovery will kick in over the next 12 months according to a key survey that measures business confidence in the region.

The Coventry and Warwickshire Chamber of Commerce's first Quarterly Economic Survey of 2010 showed that confidence had improved slightly since the turn of the year. That was on the back of a very bleak picture throughout 2009 when the recession was in full swing.

More than 180 firms responded to the survey from both the manufacturing and service sectors, and while sales at the beginning of the year hadn't shown a dramatic rise, there was more optimism surrounding the year ahead.

In manufacturing, 55 per cent of companies felt turnover would rise and only 21 per cent thought there would be a fall. In services, 48 per cent expected a lift in turnover, while 19 per cent thought there would be a drop.

Alan Durham, director of policy at the Coventry and Warwickshire Chamber of Commerce, said: "The Quarterly Economic Survey is always a strong barometer of the general mood among business and these results reflect the anecdotal evidence.

"Many businesses have already made the very tough decisions in the past year and so while confidence is improving it is from quite a low base.

"Are companies more confident now than 12 months ago? In the main, yes, but that was because they were devoid of much optimism this time last year.

"There are still businesses out there that require support and we urge them to contact the Chamber immediately to find out how we can help them.

"That said, the results are more positive than at the beginning of the year but there are still some worrying figures on investment. 

"Whether the Chancellor's announcements in the budget will have any effect on that will remain to be seen."

In manufacturing, 32 per cent of companies revised downwards their plans of investment in plant, equipment and machinery. 

A quarter of companies in the service sector said they would be cutting back on training with just 14 per cent saying they would spend more to up-skill staff.

Unemployment will, seemingly, remain static with 66 per cent of service-based businesses expecting staffing levels to remain the same and 65 per cent of manufacturers thinking likewise.

Cashflow remains a concern as 47 per cent of manufacturing companies saying it had fallen in the past three months and 37 per cent of service-based businesses agreeing.