Business growth 'to slow for two years'

News Article - 29 October 2008
Category:

Most UK businesses believe that business growth will slow or stop for at least two years, according to a survey.

The Baker Tilly study found that nearly all (98 per cent) respondents agreed with the two-year estimate, contrasting sharply with the company's survey in April which found that only a third thought this.

Some were more pessimistic, as 16 per cent felt it would be post-2011 that the economy would be back to growth levels in 2007.

However, Baker Tilly audit partner Mark Harwood felt that, while growth may suffer, the predicted recession will not be long-lasting.

"Overall, indications are that, whilst there has been a decrease in confidence since April the expected recession will be relatively short, although recovery to 2007 rates of growth may be slow," he said.

He warned that corporate expenditure seems set to fall while the labour market will "tighten" - which will in turn "increase the pressures on the consumer".

A total of 100 private and public firms of varying sizes and across different sectors were involved in the survey.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »