The Big Question - Recession looms

Business confidence among FDs has plummeted in the space of six weeks with over two thirds predicting that a UK recession is just around the corner.

This week’s Big Question, carried out for Accountancy Age by Reed Accountancy Personnel, found that 68% of FDs believed the UK economy was on the brink of recession. When asked about the likelihood of a recession in The Big Question at the start of July only 41% of FDs believed a recession would happen by the end of the year.

‘The recession is just around the corner and the government is blind to it,’ said Kevin Tomlinson, FD of manufacturer Signam.

Paresh Sanat, of SBJ Employment & Safety Services, added: ‘Manufacturing output is down and the recent job losses are a clear indication that recession is not far away.’

Only 21% of FDs believed a recession was not looming. ‘The strength of service industries should offset a weak manufacturing sector,’ said one optimistic FD who asked to remain anonymous.