Economy hits rock bottom
Jan 13 2009
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The state of the manufacturing and services industries have hit an all-time low, according to a survey by the British Chambers of Commerce (BCC).
David Frost, director general of the BCC, says: ‘These are truly awful results with the scale and speed of the economic decline happening at an unprecedented rate.’
Domestic sales in the services sector plummeted to -31 per cent in the fourth quarter, from minus seven per cent in the third, with manufacturers’ sales dropping to -38 per cent from -13 per cent.
Export sales were also bleak. Here, the service sector worsened more sharply than manufacturing, dropping 22 points to minus nine per cent.
David Kern, chief economist at the BCC, says further measures need to be taken to avoid a prolonged recession: ‘The smooth flow of finance to businesses must be sustained at all costs, and business taxes will have to be cut.’
The survey of 6,000 businesses revealed the worst findings since it began 20 years ago, said the BCC.
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