Businesses in Birmingham and Solihull are fighting their way out recession by looking to overseas markets.

Figures from Birmingham Chamber's second quarterly economic survey of 2011 reveal that both the manufacturing and service sectors have bounced back by exploiting opportunities abroad.

Manufacturers reporting an increase in sales rose 59 per cent, the highest figure for over 12 months. Order books were also fuller with 47 per cent reporting an increase, although that figure was eight per cent down on the previous quarter but a 10 per cent rise on a year ago.

There was a similar picture in the service sector. Firms reporting an increase in export sales rose to 55 per cent - the highest for over 12 months - and orders were also buoyant with a year high at 54 per cent, compared with 40 per cent 12 months ago.

President Christine Braddock said: "The does demonstrate the resilience of our businesses in this region. In all sectors they have looked at new markets and new products and are on their way back.

"We can only hope that government policies maintain stability. Interest rates have been at an historic low for 27 months and we urge the Bank of England to maintain this level and to look at an increase in the quantitative easing programme."

Confidence was also returning slowly to the manufacturing sector. Thirty-two per cent said they had revised their plans to invest upwards against 22 per cent a year ago and nearly a quarter said they were looking to invest in training.

Sixty-seven per cent were expecting to record an increased turnover while a similar number (66 per cent) were confident profitability would improve. Those figures have remained largely static over the past year.

The majority of service sector firms (financial, legal and other business services like hotels, transport and communication industries) were also optimistic that turnover and profitability would improve.

However, there was only a slight improvement in the manufacturing sector in the number of firms prepared to increase their workforce. Thirty-one per cent said their workforce had increased over the past three months and 28 per cent said they would probably take on new personnel in the next three months.

Service sector staffing plans also remained flat with 22 per cent recruiting in the past three months and 28 per cent expecting to go into the jobs market in the next quarter.