Business confidence has overwhelmingly improved to reach its highest readingever a new survey from business group Ibec reveals.

Its business sentiment survey for the third quarter shows the first overall positive reading since the survey started in 2009. Moreover, firms’ expectations for the next three months have grown faster than current business confidence, both in their own firms and the economy as a whole, signalling improving prospects driven by expectations of increased sales, a growing customer base and higher profitability.

Fergal O’Brien, head of policy and chief economist with Ibec, said that the survey shows that business conditions are steadily improving and points towards solid economic growth over the coming quarters.

“Recent indicators have also pointed to an improvement in the mood of consumers. It’s good to have the budget over with earlier in the year and we should enter 2014 in a significantly stronger position than recent years. The weak performance of the wider European economy, however, remains a concern.”

Managers’ confidence in their own business also recorded a third consecutive high, with respondents in the hotels, catering and leisure sector reporting the highest levels of current own business sentiment. Companies’ perception of the overall business environment improved strongly in the third quarter, with this index also recording a series high. The employment intentions index was positive for the third consecutive quarter indicating further job growth in the second half of the year. Expectations of employment growth were particularly high in med-tech, telecoms, electronics manufacturing and retail. Managers’ expectations for order books rose sharply. Sectors reporting the most positive order book expectations include med-tech, electronic manufacturing, financial services and telecoms.

According to the report, firms’ expectations were positive across all measures, bar unit selling price. Food manufacturing and retail have the lowest expectations of unit selling price over the next three months. Pharma firms also continue to see reductions in unit selling price expectations as the patent cliff brings infurther competition from generic drugs.