Growth predictions for 2014 and 2015 have also been upped, from 1.9% and 2.4% to 2.2% and 2.5% respectively.
Despite its improved outlook, however, the BCC warned the recovery is still not secure and many challenges remain.
The business lobbying group added it had urged the government and the MPC not to become complacent and to do everything in their power to ensure the recovery moves from good to great.
The upward revision was put down to stronger than expected GDP growth in Q2 (0.7%), a strong service sector and household consumption.
John Longworth, director general of the BCC, said: “We have had false dawns in recent years and although this upturn appears to be on stronger ground, we must be aware that complacency could lead to setbacks. There are many external factors, such as the eurozone, the Middle East, and the Chinese economy that could halt our progress. However, our surveys have shown that firms are confident about their prospects and want to expand.”
