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Recession 'looming' for UK firms
The UK is facing a serious risk of recession within months, the findings of a survey of almost 5,000 small and medium-sized businesses suggest.
The British Chambers of Commerce's (BCC) quarterly report found the credit crunch and rising costs had dented the most important sectors of the economy.
Firms in the manufacturing and services sector said domestic sales and orders had slowed over the last three months.
If these trends continued, a recession was only months away, the BCC warned.
The BCC, which represents many small and medium-sized businesses, also said firms were experiencing serious cash-flow problems.
Its economic adviser, David Kern, said the survey showed a "menacing deterioration" in UK prospects.
"We are now facing serious risks of recession," he said.
Grim outlook
"The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected."
Services firms, which include restaurants, gyms and tour operators, have been particularly hard hit, the BCC reported.
Sales and orders, job expectations and confidence in this sector had hit their lowest levels since the recession of the early 1990s.
http://news.bbc.co.uk/2/hi/business/7494508.stm
The UK is facing a serious risk of recession within months, the findings of a survey of almost 5,000 small and medium-sized businesses suggest.
The British Chambers of Commerce's (BCC) quarterly report found the credit crunch and rising costs had dented the most important sectors of the economy.
Firms in the manufacturing and services sector said domestic sales and orders had slowed over the last three months.
If these trends continued, a recession was only months away, the BCC warned.
The BCC, which represents many small and medium-sized businesses, also said firms were experiencing serious cash-flow problems.
Its economic adviser, David Kern, said the survey showed a "menacing deterioration" in UK prospects.
"We are now facing serious risks of recession," he said.
Grim outlook
"The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected."
Services firms, which include restaurants, gyms and tour operators, have been particularly hard hit, the BCC reported.
Sales and orders, job expectations and confidence in this sector had hit their lowest levels since the recession of the early 1990s.
http://news.bbc.co.uk/2/hi/business/7494508.stm
