'Difficult two years' on the way for British business
May 12 2008
Businesses in the UK are in line for 'two difficult years' in 2008 and 2009, the British Chambers of Commerce (BCC) claims.
Economic advisor to the BCC David Kern warns of 'worsened' prospects for the economy over the next two years and says that although recession remains unlikely, 'the marked slowdown in the pace of economic activity will be more prolonged than initially thought'.
Confidence among the 'relatively resilient' business sector has been 'undermined' by recent tax changes among the business sector and firms 'will face a difficult and risky climate over the next year', he adds.
Kern says most of the slowdown in the UK economy will be caused by a lessening in consumer spending growth, due in part to falling house prices and smaller disposable incomes.
In addition, household spending growth is predicted to reduce from three per cent in 2007 to 1.1 per cent in 2008 and 1.4 per cent in 2009, says the BCC.
The BCC is a trade body which acts as a voice for the five million employees of local business and the members of a network of Chambers of Commerce from across the country.
There are currently no comments on this article
Comments