Business slowdown predicted

News Article - 16 June 2008
Category:

The number of businesses going into administration in the UK between now and 2009 could rival the dot com crash of 2002, according BDO Stoy Hayward.

Accountants at BDO are predicting an 18 per cent increase in the number of business failures in the next two years and stated that already this year the number of businesses in administration had grown by 54 per cent.

Shay Bannon, business restructuring partner at BDO, said: "Six months ago there was hope that business would feel some respite if the Bank of England slashed interest rates.

"But spiralling inflation figures now means this is unlikely in the short term."

In related news, growth in the UK's gross domestic product slowed to 0.2 per cent over the three months prior to May, according to a report produced by the National Institute of Economic Social Research.

This represents a fall from 0.6 per cent since February.

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 »