News Article - 23 May 2012
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Careful planning is vital for firms as Deloitte claims the UK is entering its weakest period of economic growth in 15 years.

Roger Bootle, economic adviser to the firm, said there is a strong chance that there will be a "full-blown recession".

"A prolonged economic downturn may force employers to wield the axe more sharply than in briefer downturns, when they were more prepared to hoard labour," he added.

Mr Bootle claimed that slower business growth would reduce employment and income levels so far that household spending cannot improve the state of the economy.

Also, the UK export market, eurozone growth and net trade will not be strong enough to support the impact of the slowdown, he said.

His comments echo PricewaterhouseCoopers' recent advice to businesses that "this is not the moment to relax".

Mike Jervis, partner in the firm's Business Recovery Services practice, predicted that business performance will be hit severely by tighter credit conditions this year, reported by Reuters.

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