A survey by business consultants BDO has found that business optimism in the UK is at its highest level in 22 years.

The monthly report incorporates results of surveys from the CBI, the Bank of England's Agents and data from business information providers, Markit.

BDO said its optimism index, which incorporates results of surveys from the CBI, the Bank of England's Agents and data from business information providers, Markit, points to improvements over the next half year.

Peter Hemington, a partner at BDO, said: "An interesting feature of the recovery so far has been the way in which UK productivity remains at levels last seen in late 2005. Looking at this optimistically, this means that the UK can continue to grow for some time by increasing productivity before wage-related inflationary pressures begin to kick in."