Economic Slowdown Doesn’t Mean Another Recession, says BCC

Sluggish consumer spending and high inflation mean economic growth will be slower than expected over the next two years, but another recession is unlikely, the British Chambers of Commerce (BCC) has said. The BCC’s latest quarterly economic forecast predicted UK economic growth would be 1.3 per cent this year and 2.2% in 2012, down from its forecast in March of 1.4% and 2.3%.  Despite its pessimistic outlook, the BCC said it supported the Government’s tough fiscal approach to tackling the UK’s deficit and that a further recession was “unlikely”. “The Government has more to do if the private sector is to create new jobs, invest and export, and contribute to a lasting economic recovery in the UK.” said BCC director general, David Frost. “New regulatory burdens, business tax... »

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Business Failures rise by a 3rd

The number of UK businesses going bust increased by 29% in July compared with the same month last year, research by credit rating firm Equifax has revealed. The research from Equifax found that the transport and communication sector was worst hit, with a 59% increase in business failures compared with 2007. The next worst hit was the construction industry where failure increased by 57%, manufacturing (39%) and retailing (33%). The service sector has suffered the least – with only a 12% increase in failures compared with last year. Equifax head of commercial solutions Nic Beishon said: “With the price of fuel spiralling even higher, many businesses are starting to feel the pinch as overheads continue to soar. The property downturn has also had an impact on the construction secto... »