As the credit crunch bites even harder, the UK is at a “serious risk” of recession according to business leaders. The British Chambers of Commerce report that the number companies which are reporting falling orders, is outstripping rising companies for the first time since 1990.
The BBC have reported that business confidence has reached an all time low. BBC economic adviser David Kern said that their survey shows the state of the UK economy, and that “the outlook is grim, and we believe that the correction period is likely to be longer and nastier than anticipated.”
UK business are facing cash flow problems due to the soaring costs of living with the increase in bills, raw materials and oil, whilst banks are cutting down on borrowing when many businesses need it most.