News and features

Mon, 8 Dec 2008

Recession threat "here to stay"

Small businesses are bracing themselves for a rough next quarter, according to a report.

Following a meeting between banking chiefs and the chancellor Alistair Darling as well as the publication of new economical data, the Telegraph has warned the threat of recession is closer than ever.

Information released by the Office for National Statistics revealed the economy shrank for the first time in 16 years in the last quarter to September.

The newspaper suggested financial experts are "prepared for the worst".

Chief economist at Investec Philip Shaw said: "The UK may well experience a recession that is significantly deeper than we had expected."

The article also noted manufacturers are welcoming the waning strength of the pound but are still pessimistic about the next few months.

It cited a survey from the Confederation of British Industry that showed confidence was low.

In other business news, the Guardian said businesses with overdrafts were worried about the potential withdrawal of this service and the prospect of higher borrowing charges.

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