BCC highlights recession risk for UK firms
Jul 08 2008
The British Chambers of Commerce (BCC) has claimed that the UK is in "serious risk" of a recession in the upcoming months.
Its quarterly report, which saw 5,000 small and medium-sized enterprises (SMEs) being questioned, highlighted that rising costs have impacted on a number of important sectors within the economy.
Key findings from the report include that confidence balances in both the manufacturing and services sectors have dipped "sharply", while cashflow is in negative territory.
The body has suggested that if these trends continue the UK is only one-quarter away from a technical recession, adding that the correction period is likely to be longer and worse than anticipated.
Commenting on the findings, the BCC's director general David Frost said they are deeply worrying, noting he is making the government aware that "to put more pressure on business would not only restrict business growth and hit the consumer hard, it would crush further what our economy is based on - confidence".
Meanwhile, the Bank of Scotland recently revealed that SMEs are currently onto their cash rather than investing it due to the economic climate.
Its quarterly report, which saw 5,000 small and medium-sized enterprises (SMEs) being questioned, highlighted that rising costs have impacted on a number of important sectors within the economy.
Key findings from the report include that confidence balances in both the manufacturing and services sectors have dipped "sharply", while cashflow is in negative territory.
The body has suggested that if these trends continue the UK is only one-quarter away from a technical recession, adding that the correction period is likely to be longer and worse than anticipated.
Commenting on the findings, the BCC's director general David Frost said they are deeply worrying, noting he is making the government aware that "to put more pressure on business would not only restrict business growth and hit the consumer hard, it would crush further what our economy is based on - confidence".
Meanwhile, the Bank of Scotland recently revealed that SMEs are currently onto their cash rather than investing it due to the economic climate.
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