There were some further signs that the UK economic recovery has gathered pace during the first three months of 2006. In its quarterly economic survey, the British Chambers of Commerce said both the manufacturing and services sectors showed improvements in the first first quarter. However, it stressed that the upturn in the economy is fragile, and added that many threats persist. "The findings signal welcome improvements in both the manufacturing and service sectors but the upturn is still very fragile and needs to be nurtured," said David Frost, the BCC's director general "The recent progress shown by our quarterly survey is from a low base, and follows a marked deterioration in the first three quarters of 2005," he added A more detailed look at the survey shows that the manufacturing sector recorded improvements in its first quarter balances for home sales (up 2 points on the quarter to +15 pct) and orders (up 10 to +13 pct), export sales (up 11 to +23 pct) and orders (up 15 to +22 pct), employment expectations (up 5 to +12 pct), and plant and machinery investment (up 7 at +15 pct) But the sector recorded declines in its balances for employment (down 5 to +2 pct), cashflow (down 10 to 0 pct), and profitability confidence (down 7 to +21 pct). "Manufacturing has persistently failed to sustain recovery, and the Q1 confidence balances are disappointing and worrying," said Frost. Meanwhile, the service sector, which accounts for around 70 pct of the UK economy, saw its first quarter performance improve in most areas