A strong start to the year among Britain's businesses is driving an expected increase in economic output, new research says.

A study by business advisors BDO suggested the UK could expect GDP growth around its long-term trend 2% in the early part of 2018.

The report said performance in the services sector has been improving, linked to the pick-up in the global economy and better than expected consumer spending in the UK.

Record high employment levels look set to continue early in the first half of the year, although further increases in prices could be on the horizon for UK consumers, said BDO.

Peter Hemington, a partner at BDO, said: 'British businesses have made a strong start to 2018 despite the ongoing uncertainty about our nation's future outside of the EU.

'However, if the government continues to stall on providing a clear Brexit strategy for businesses, the performance of UK firms will suffer.

'We need the government to align quickly and communicate its Brexit plan. It is crucial so that UK businesses can make informed investments to best prepare for the future.'