We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

Economy may already be contracting

Q1 prospects for 2012 look fragile

Article comments

The economy is at serious risk of contracting over the next three months as the services sector falters, according to a new business trends report published on Monday.

The faltering recovery is largely attributed to a slowdown in the services sector, which makes up three quarters of economic output, said the latest Business Trends report by accountants BDO.

Despite recent better than expected figures, short-term trading prospects for businesses have continued to plummet. BDO analysis showed that turnover expectations over the next three months was at its lowest level since June 2009, suggesting the economy could already be contracting.

Prospects for the first quarter of next year continue to look fragile as business confidence also falls below expectations, the firm said.

A further cause for concern was the worsening jobs market, which according to the firm's analysis showed recruitment was likely to remain weak.

Peter Hemington, partner at BDO, said: "Despite official GDP figures for Q3 exceeding expectations, the UK's economic recovery remains sluggish and we could already be entering a period of negative growth.

Hemington urged the chancellor "to tackle the slowing recovery head on in his Autumn statement by reforming the tax system.


Recommended Articles


Economy may already be contracting

How Nokia helped and hindered Microsoft's earnings

How Nokia helped and hindered Microsoft's earnings

The Nokia Devices and Services business helped boost Microsoft's revenue, but hurt profitsmore ..

Cybercrime wave hits European banks

The funds transfers are affecting 34 institutions, according to a new reportmore ..

London house prices show "record" 20.1% growth

The ONS reported accelerating house price inflation in the year to Maymore ..

China charges British investigator and wife in GSK bribery case

Chinese prosecutors are still investigating GSK China for alleged bribery of doctorsmore ..

Can shaky cyber security scupper an M&A deal?

In M&A a cyber attack on a target company could have a material impact on its valuemore ..

Why CFOs are changing their thinking on sustainability

Pernod Ricard CFO Gilles Bogaert has nailed his 'green' colours to the mastmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *