Foreign and domestic demand for British products remained steady in the second quarter, according to a survey from The British Chamber of Commerce, and manufacturing and services firms reported a more optimistic view of future business.The Q2 Quarterly Economic Survey (QES) recorded stronger balances for UK manufacturers in confidence, cash flow, home orders, employment and plant and machinery investment. “The manufacturing upturn is very fragile and follows a period of weak confidence and falling output,” BCC Director General David Fost said. “For its part the Government must carry out its promise to reduce the oppressive regulatory burden and make it clear that additional tax increases on business will not be contemplated.” The manufacturing sector’s domestic balances recorded little movement in the second quarter. Exports for the manufacturing sector were higher than the final three quarters of 2005. Firms planning to increase investment in plant and machinery rose one point to 16 percent. Overall business confidence for the manufacturing sector rose six points to 49 percent, the highest since Q4 2004. Manufacturing profitability confidence rose 19 points to 40 percent, the highest since Q4 1999. Cash flow for the sector rose seven points 7 percent. In the manufacturing industry, 1,296 firms employing 117,121 people responded to the survey. Over 600 of manufacturing respondents were exporters.