The Business in Britain survey from Lloyds TSB Corporate Markets, based on the responses of more than 1,800 UK firms, showed that during the first half of the year, the number of companies reporting soaring sales reached record levels.

A balance of 41 per cent of companies reported higher sales growth during the six months from January, up from a balance of 37 per cent at the start of the year.

Despite the looming prospect of higher interest rates, business confidence remained buoyant, rising from a balance of 37 per cent in January to 41 per cent in the past six months.

Lloyds TSB Corporate Markets said the findings suggested further economic growth and rising business confidence.

"2007 is shaping up to be a great year for businesses. Sales hit such a high in the first half that the prospects for further growth by the end of the year are very strong - and the effect this has had on business confidence is clear for all to see,” said Diana Brightmore-Armour, CEO of corporate banking and co-head of corporate markets at Lloyds TSB.

“Firms may harbour fears about the future of interest rates and the chances of price increases may be reduced but even so, their outlook for continued growth in the second half of the year is positive.”