The Thames Valley Chamber's latest economic survey shows that, for the first time in three years, fewer manufacturers believe profitability and turnover will rise.

Exporters, in particular, continue to be hit by the strength of the pound, with a downturn in overseas sales and exports.

But, in the service sector, confidence remains high, despite a slight fall in overseas sales.

Labour shortages are still a major difficulty across all sectors.

Peter Cullimore, chairman of the chamber's Wycombe and South Bucks area, said: "The chamber takes the view that much still needs to be done to improve the infrastructure of the region, helping businesses to compete and communicate.

"This, together with help in easing the current difficulties over exchange rates, would do much to ease the burden of businesses of all sizes locally."

The chamber's report coincides with a survey by Lloyds Bank, covering Bucks, Berks, Herts and Beds, which found that businesses remain cautious about the local economy, with confidence falling to its lowest since the last recession.

However, the Business in Britain survey found that a fifth of firms which replied had increased orders, bucking the national trend.

Edward Tadros, managing director of Ercol Furniture, in High Wycombe, said: "We remain cautiously optimistic.

"We are selling to Korea and Japan. Orders are, unfortunately, a bit down on last year, but we are selling displays to a major new stockist in Tokyo.

"We are also getting displays up and running on the east coast of America and we are very optimistic about that."

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