Business confidence is said to be at a three year high according to The Small Business Index, a measure of confidence released by the Federation of Small Businesses.

The measure reached 15.9 points in the second quarter of the year, which is up 9.6 points compared to the first quarter of 2013 and is the second highest ready since 2010, when the Index began.

Financial services firms are reporting the highest confidence levels, with other industries, including manufacturing and real estate, all confirming that they are optimistic about their prospects and that conditions in the marketplaces is improving.

The survey also found that more and more companies are expecting their turnover to increase in the coming three months and their businesses to grow over the next year.

Many businesses are also expecting to see a rise in staffing levels, which should be boosted by the Enterprise Allowance that was announced in this year’s Budget.

John Allan, national chairman of the FSB says, “This is all good news, but we must not be complacent. The Chancellor must use the Spending Review to build on this optimism. While there are positive signs, inflation and not being able to access finance will affect how quickly, and how much, small firms can grow and create jobs.”