Tuesday, 7 October 2008

In Recession

Britain is already in a recession, with business confidence, profits and turnover now at record lows and unemployment set to rise by up to 350,000 in the next year, according to an "alarming" new report.

An authoritative survey of 5,000 firms by the British Chambers of Commerce (BCC) showed a worsening economic outlook and rising unemployment amid a "collapse" in confidence across all sectors of industry.

The Report warned that the jobless total was expected to increase by between 300,000 and 350,000 over the next 12-24 months, which would take the total over the two million mark.

The number of people out of work in the UK rose by another 81,000 between May and July, to 1.72 million, according to government figures.
That took the official unemployment rate up from 5.3% to 5.5%.

The number of people claiming jobseeker's allowance rose, by 32,500 to 904,900 in August, the Office for National Statistics (ONS) said.
In a further sign of the economic slowdown, the number of people in work and the number of vacancies both fell.
The figures show that unemployment is starting to accelerate and it now looks very likely that total unemployment will reach two million during 2009.

The past few months have seen a steady flow of big redundancy announcements at employers such as major house builders and financial services companies affected by the credit crunch.
More recently there have been job losses at Ford, travel firm XL and the investment bank Lehman Brothers, while the nationalised mortgage bank Northern Rock is in the process of shedding 1,300 jobs.

Britain's services sector shrank in September at its fastest rate since records began 12 years ago, new figures suggest, adding to the economic gloom.
The service sector represents about 75% of the UK economy. Hotels and restaurants were among those hardest hit.

What is left of Britain’s manufacturing sector shrank in September at the fastest rate for 17 years, a survey has suggested.
The Chartered Institute of Purchasing and Supply's purchasing managers' index fell to 41 last month, its lowest reading since records began in 1992.

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