Confidence among West of England firms remains fragile despite a period of strong growth, according to the latest survey by Business West.
The organisation, which runs Bristol Chamber of Commerce and the Bristol Initiative, said the findings showed the need for the new Government to act to encourage sustainable growth.
There was also a danger of further uncertainty linked to the EU referendum and a possible Greek exit from the euro, it said. 
The quarterly survey of almost 500 firms showed the number of firms achieving higher domestic sales increased by four percentage points to 50% while 41% of exporters racked up higher sales – 16 percentage points up on the previous three months.
The number of firms taking on more staff rose by five points to 33%, with 35% expecting to recruit more people over the coming three months – and increase of four percentage points.
Cashflow increased for 40% of firms – seven points higher than last time. And while business confidence dropped three points, it remains high at 71%.
Executive director of Bristol Chamber of Commerce and Initiative James Durie, pictured, said the survey findings signalled a strong quarter after a sluggish start to the year.
“The results are encouraging in the short term, with increases in most major indicators in the last three months,” he said.
“However a drop in business confidence and mixed results on the year reinforce the need for a new Government to bring a fresh set of measures to help secure long-term sustainable economic growth.
“One of the major success stories of this quarter is exports, with a double digit increase on the quarter in both sales and orders.
“Bristol’s year in the international spotlight as European Green Capital 2015 is certainly helping pump new blood into our export veins, with more firms taking advantage of the opportunities available in international markets.
“Add to that increases in domestic sales, recruitment and cashflow and we see a positive picture over the last three months.”
But it was not all good news as a drop in business confidence proved there is still work to be done.
“Whilst the UK General Election result provided clarity; the national and international political climate since has been anything but clear,” he said.
“Constant talk of an EU referendum, coupled with fears of a Grexit has brought uncertainty which could have had a negative effect on business confidence. These results highlight that business confidence remains quite fragile and there needs to be laser-like focus by Government on long-term sustainable economic growth.
“Growing productivity and the conditions for private sector investment and jobs must be maintained whatever the ongoing challenges we will face from the public sector spending cuts ahead.”
