Suren Thiru, BCC head of economics, said: "The manufacturing sector saw a welcome improvement across a number of indicators, boosted in part by stronger growth in key export markets".
The British Chambers of Commerce's quarterly economic survey of more than 7,000 firms showed the net balance of firms reporting increased sales rose to the highest levels, well above 25 per cent, since the first quarter of 2015 for both domestic buyers and exports.
"The uninspiring results we see in our third quarter findings reflect the fact that political uncertainty, currency fluctuations and the vagaries of the Brexit process are continuing to weigh on business growth prospects", Dr Adam Marshall, the BCC's director general said in a statement accompanying the survey.
The Bank of England hiking interest rates next month would be an "extraordinary" step and should be avoided given the current economic climate in the United Kingdom, an influential business lobby groups said.
British manufacturers enjoyed their strongest quarter since the start of 2015, in spite of "muted" growth in the broader economy, according to analysis based on a massive survey of United Kingdom businesses published today.
"The Chancellor's Autumn Budget is a critical opportunity to demonstrate that the government stands ready to incentivise investment and support growth here at home".
Firms reported export sales and orders also grew in the manufacturing sector as economic growth in key United Kingdom markets has added to demand for United Kingdom products.
"While much of Westminster and Whitehall is distracted by Brexit, business needs action now on the home front". In particular, those businesses that depend on the consumer have reported weaker growth rates. "We'd caution against an earlier than required tightening in monetary policy, which could hit both business and consumer confidence and weaken overall United Kingdom growth", Thiru said.
Mr Thiru added: "While interest rates need to rise at some point, it should be done slowly and timed to not to harm the UK's growth prospects".