Bradford businesses are cautiously optimistic about their futures, despite of concerns about the state of the national economy.

The Bradford Chamber of Commerce's latest quarterly economic survey says sales were showing signs of improvement, investment levels were increasing and employment levels remained buoyant.

However some businesses are still concerned by worrying signs over pressures on prices, wage levels and corporation taxes.

The survey yielded good news for the region's manufacturing industry.

Sales and orders for manufacturers picked up in both domestic and foreign markets - giving the rise to improved investment and employment opportunities for the industry. The service sector also reported a revival of fortunes, reporting an increase in both investment and turnover.

Richard Wightman, president of the Chamber, which has nearly 1,100 members heralded the hard work and determination of the district's businesses.

"A difficult year has been forecast for British business by many observers and that seems to be a constant running through life these days. When was it ever easy to run a business? The way that many companies manage to fight back against an oppressive legislative and regulatory back-drop never ceases to amaze me.

"Companies are still taking on staff, investing in their staff and property, and showing the hard work is paying off with increased sales and orders. Business is the life-blood of the economy and should receive more plaudits from those in power and authority."

The survey also reported an increase in investment interest and property refurbishment and said that as the regenerative work began in the city centre, it hoped to see these levels increase.

The chamber said it hoped the positive signs flagged up in the reports were an omen for the remainder of 2006.

The concerns raised in the report related mainly to wage levels and taxation.

The manufacturing sector said it was perturbed by increasing wage levels and the fluctuating cost of raw materials.

Service industry chiefs also highlighted their concerns over corporation tax.

The positive findings of the report will come as a boost to the Bradford business community, particularly after the results of a similar survey, conducted during the summer, reported a worrying decline in sales, investment and confidence.