Member Article

UK ‘expected’ to slip back into recession

Almost four in ten (38%) of mid-size businesses expect the UK to slip back into recession in 2011, according to the latest Mid-Size Business Confidence Survey.

Despite the lack of confidence surrounding economic growth in 2011, 98% of mid-sized companies are still confident of their business survival – the highest level reported since the survey began in 2009.

Times are proving tough for many businesses in the UK with one third reporting they have already lost revenue as a direct result of public sector spending cuts.

Close to three quarters of mid-size businesses believe the Bank of England should keep interest rates unchanged in the next quarter of 2011.

Also a quarter of respondents consider sustainability a low priority on their agenda and a 1 in 9 do not think it is a priority at all.

Ray Perry, executive director, brand, profile and marketing, CIMA, said: “Although many of the respondents felt that the UK was likely to plunge back into recession, the majority still feel confident of their own business survival but at the same time expect to cut their number of full-time employees in order to achieve this.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .