Experts at The British Chamber of Commerce (BCC) beleive the UK is in line for a recession and the period of downturn could be "longer and nastier" than has previously been thought
The British Chamber of Commerce (BCC) has suggested that a recession is looming in Britain and has predicted unemployment to rise by 300,000 by the close of 2009. Experts at the Chamber also indicated that the period of downturn could be "longer and nastier" than has previously been thought.
A BCC survey of 5,000 large and small UK businesses revealed a potentially "grim and ominous" economic position coming for British business. With concerns growing that a similar recession to that experienced in 1990 is on the way, many experts are now calling for a further cut in interest rates.
This is expected to be waved away by the Bank of England's Monetary Policy Committee despite it presently facing three per cent inflation driven by high food and energy prices.
David Frost, BCC general director, revealed to the Telegraph that British business was now facing a crisis of confidence.
"There is a real risk of recession in the coming months. This is deeply worrying and not just for business but for the consumer too, with both manufacturing and services reporting negative results. If these trends continue the UK business sector is now only one quarter away from technical recession."
Official figures revealed that manufacturing growth dropped by 0.5 per cent for April and May and is expected to be stuck around zero for the remainder of the year. However Mr Frost urged government not to put increased pressure on business as it will further affect levels of confidence.
