THE head of Dorset Chamber of Commerce and Industry (DCCI) has warned against “complacency” after signs that the economic recovery could be slowing.

The latest Quarterly Economic Survey from British Chambers of Commerce (BCC) showed the economy was still growing but the pace had slowed in some sectors, especially manufacturing and exports.

Ian Girling, chief executive of DCCI, said government reforms were needed to keep the recovery on track.

He backed the BCC’s demands for urgent reform of business rates as well as more support for exporters and improved access to finance for small firms.

The BCC’s findings showed domestic sales and orders in manufacturing were down in the third quarter of 2014 compared with the third quarter of 2013. Sales balances showed a fall from plus 42 per cent to plus 23 per cent, while orders were down from plus 41 per cent to plus 24 per cent.

However, business confidence was at pre-recession level, while employment was increasing.

Some 7,000 businesses nationwide take part in the survey, including many DCCI members.

Mr Girling said: “The latest Quarterly Economic Survey is a timely reminder that there are still challenges ahead and that sustained economic growth is not guaranteed.

“Dorset businesses have shown great resilience and innovation over the past few years to weather the economic storm.

“Now they, like their counterparts nationwide, need the government’s support to ensure that they can continue to drive the growth necessary to ensure that we secure a lasting economic recovery.”

He added: “This means reforms of business rates, greater access to finance for growing firms and more support for exporters.

“The Bank of England also needs to think carefully about interest rate rises to avoid dampening business and consumer confidence.”