LONDON – The U.K. economy will avoid another recession and exports will help propel a “modest” recovery this year, the British Chambers of Commerce said Tuesday.

The BCC’s gauges of domestic and foreign demand at manufacturers and services companies all rose last quarter, the group said, with export measures close to a record.

Britain’s manufacturing slump eased in March and services continued to expand, economists said.

The BCC’s gauge of domestic manufacturing orders rose to 14 last quarter from 3 in the previous three months, while the export measure increased to 22 from 11. Within services, domestic orders rose to 11 from 7 and export orders surged to 26 from 18. Most gauges of confidence also improved, with the outlook for profits at the highest in more than five years, according to the BCC.