Businesses in Norfolk reported a detiorating cashflow position in the last quarter while manufacturers noted a fall in both home and export orders and sales.

The latest British Chamber of Commerce (BCC) quarterly economic survey figures out today revealed that while there was progress on the economy nationally, firms in both Norfolk and the East of England were not so optimistic with a particular dip in confidence among manufacturing firms.

The survey, which tracks the differentials in positive and negative answers among respondents to key questions around exports, sales, and hiring and firing, found that while Norfolk businesses remained resilient, many balances were still below pre-receccsion levels and growth remained too low.

Nationally, the survey, made up of responses from more than 7,000 businesses revealed improvements for both the manufacturing and service sectors, amid on going concerns about the crisis in the eurozone and the impact it might have.

But the Norfolk findings noted, by contrast, a fall in both domestic sales and orders compared to the previous quarter among manufacturers although in the service sector there was an increase in the firms noting a rise in both.

The number of service sector firms noting a rise in export deliveries and orders rose eight points to +68pc and orders by six points to +66pc.

Meanwhile, while recruitment in the last three months has been slightly depressed for both the service and the manufacturing sectors, manufacturing employers were more optimistic than the service sector, as 21pc expected their workforce to increase over the next three months - a rise of 18 points from the previous quarter.

The service sector also reported an increase of two points to 16pc for expected recruitment over the next quarter. Both sectors in Norfolk and across the rest of the UK reported that difficulties in recruitment were still an issue for them.

But while many saw improved confidence in turnover, profitbability was still being squeezed, while the results saw a deteriorating cashflow position among firms locally, nevertheless there was an increase in manufacturing firms investing in both training and plant and machinery.

The chamber noted that overall while the cconomy is improving and exports are still strong, growth will be subdued.

Caroline Williams, Norfolk Chamber chief executive, said: 'The findings suggest the economic outlook will improve gradually, and that growth will be positive but subdued this year.

'The results also demonstrate resilience among Norfolk businesses, many of whom are confident and looking to invest and increase exports this year.'

John Longworth, director general of the BCC, said: 'Although the progress seen in the first quarter of this year is modest, it is progress nonetheless. The government should be quick to implement the supply-side measures announced in the budget to get growth moving, and consider new ways to support business confidence, which has continued to rise. It is clear from our survey that any growth this year will be slow and steady, and it is important that this does not veer off course.'