The improved sentiment is good news but it comes from a "very weak base", the British Chambers of Commerce says.
Most UK businesses expect sales to rise over the coming year, despite seeing no growth over the past three months, according to a new survey.
The British Chambers of Commerce Quarterly Economic Survey is based on the responses of 5,200 mostly small and medium-sized companies.
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It said 52% of firms surveyed between 13 February and 9 March expected sales to rise over the coming year, up from 44% in the third quarter of 2022.
However, over the past three months only 34% had seen sales rise, compared with 24% who suffered a drop in sales and 41% whose turnover was flat.
The figures show that overall business sentiment has improved, following a slump in confidence in the second half of last year.
David Bharier, the BCC's head of research, added: "However, this comes from a very weak base, and while confidence has improved, this is yet to translate into an overall improvement of business conditions."The economy grew by just 0.1% in the final quarter of last year and inflation hit a 41-year high.
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The gloomiest picture was from shops and hospitality firms - 38% and 32% respectively reported a drop in sales.
Also, 75% of respondents reported no increase to investment in plants or equipment - only a quarter plan to increase investment this quarter, the same level as in the second quarter of 2017.
Last month's budget 'did not go far enough'
Director General of the British Chambers of Commerce, Shevaun Haviland, said: "Last month's budget included several positive measures for business, including increased childcare support as well as plans for full capital expensing.
"However, it did not go far enough to shift the dial on growth which remains stubbornly low.
"The government failed to tackle some of the major issues holding firms back from their potential, in particular energy costs and the tight labour market which remain top business concerns.
"The government's new energy support package represents a drop of 85% in the financial help available to businesses. We reiterate our calls for increased, targeted support for those firms who desperately need it.
"The energy crisis faced by firms and households are two sides of the same coin. Yet, non-domestic customers do not enjoy the same protection as households.
"To ensure competition in the business energy sector, and solve market failures, government must also ensure Ofgem has the necessary powers to properly regulate the industry.