OPTIMISM about the future is growing in the world of business, according to the Kent branch of the Institute of Directors (IoD).

Responding to the latest business opinion survey from the IoD, Alyson Howard, chairman of the Kent branch, said: "The latest survey is surprisingly upbeat.

"Company performance, profitability and investment and optimism is very strong in the service sector. Unsurprisingly, it is notably weaker in the manufacturing sector.

"IoD members are far more confident about the outlook for their own companies than for the UK economy.

"Remember the Chancellor is forecasting three per cent to 3.5 per cent GDP growth this year, but a huge 81 per cent of IoD members think that GDP growth will be 2.4 per cent or less."

The figures, covering the final quarter of 2004, showed a resurgence of confidence from the declines seen over the summer and autumn of last year. However, optimism is still below the levels seen a year ago.