A THIRD of small firms believe the country is already in recession.
A snap survey of Small and Medium Enterprises across Britain shows nine out of 10 owners believe the country is already in a downturn.

The poll comes in the wake of yesterday’s quarterly report by the British Chamber of Commerce which claims the country is in serious risk of recession.
According to the study by phone giant Orange, 25-per cent of SMEs say the state of the economy is their biggest concern.

Overheads (23-per cent) and fuel costs (17-per cent) follow closely, suggesting firms are increasingly worried about tightening their belts. Nearly two thirds (59-per cent) describe the state of the economy as in a ‘downturn’ and a third (31-per cent) call it a fully blown ‘recession’.

Most who think the economy is in a downturn or recession see the economic climate as a threat to their business with less than one in 10 seeing it as an opportunity.

Of those that feel the downturn is a threat, one in six have already axed staff, with an additional one in six halting growth plans.
A handful (3-per cent) have had to sell assets and the same number have had to sell up.

The results are more positive on how long the downturn might last. Over half of those who think the economy is in a downturn or recession predict the economic climate will change within the next 18 months (53-per cent);
28-per cent predict a change within two years; and 12-per cent think it will go on for more than two years.

Martin Lyne, director of small and medium enterprise, Orange Business Services, said: “There is obviously a lot of concern from British businesses about the current and future state of the economy.

“While this uncertainty lingers, it is important businesses are as prepared as they can be, so that any future challenges can be taken in their stride.”
Yesterday, the British Chamber of Commerce published a survey of 5000 of its members and discovered that servicing firms reporting lower orders outnumbered those recording rises for the first time since 1990. The Chamber concluded that recession wasn’t far away unless something is done.

Source : Evening TimesGlasgow (UK). Provided by ProQuest Information and Learning. All rights Reserved.