LONDON (AFX) - Confidence in the UK manufacturing sector rose to its highest level in a year despite slower growth, weaker investments and cash flow, according to the latest quarterly survey from the British Chambers of Commerce. The survey, covering 7,000 companies, also found that the export sector remained weak in terms of both sales and orders. Smaller firms however have seen their positions overseas improve. David Sears, the BCC's deputy director general said the underlying strength in the domestic economy remains with manufacturers confident that they can avoid the worst of the global slowdown. He said the Bank of England's two rate cuts so far have worked to shore up confidence. "However, as this survey reveals little of the impact of foot and mouth across business sectors, both government and the bank must monitor carefully in the coming months the need for further rate cuts and other measures to keep the economy on track," he added.