The UK's economic recovery is still on course and a double-dip has been avoided, according to data released by the British Chambers of Commerce (BCC).

The BCC's survey of over 5,000 businesses suggested that the economy continued to grow in the first quarter of 2010.

Growth was largely due to the service sector's performance improving, with most indicators now positive compared to the last quarter. However, the results in manufacturing remained disappointing and employment is still weak.

"Although these results are mixed, they contain some positive features. Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is building, and the government must nurture this with well-thought out policies that support business growth and job creation," said David Frost, director general of the BCC.