The survey, which covered the first three months of 2010, supported the view that the economy had not fallen back into recession in the quarter, however, it warned that the recovery was set to remain "sluggish and fragile".
While the BCC reported an improving performance from the service sector, it found much cause for concern in UK manufacturing, which recorded "barely positive" results for domestic sales, with orders still in the negative.
BCC chief economist David Kern said: "While the upturn in the service sector is gradually gathering momentum, the manufacturing sector is still struggling to enter the recovery phase."
Employment in the manufacturing sector dropped sharply in the quarter, plunging 19 points to -16%, while the sector's cashflow balance also worsened, dropping 10 points to -9%.
On the plus side, manufacturing export orders grew from +17% in Q4 2009 to +21% in Q1 2010, which the BCC said was a highlight of the survey.
The Economic Survey covers around 5,500 companies and reports its findings as a percentage balance, which is the difference between the percentage of respondents giving a positive and a negative response.
BCC director general David Frost described the results as "mixed" and stressed the need for the next government to abandon Labour's planned National Insurance increase, which has been met with fierce resistance from business groups and looks set to be one of the main battle points of the coming General Election.
"Whatever the result of the General Election, a new government must avoid additional business taxes that could stifle recovery," he said. "Within the first 90 days of a new administration, the 1% hike to employers’ National Insurance Contributions, planned for 2011, should be scrapped and replaced by a less damaging 1% rise in VAT."
Kern added: "The manufacturing sector must be better supported and access to finance improved, particularly for exporting companies. Steps must be taken to help businesses create jobs and wealth, and the planned National Insurance rise must be scrapped."
The publication of the BCC's Economic Survey for Q1 2010 came ahead of the latest announcement from the Bank of England's Monetary Policy Committee, which voted to maintain the 0.5% interest rate for the 13th consecutive month and to keep the £200bn asset purchase scheme on hold.
