British economy facing risk of recession

Wednesday, July 09, 2008 LONDON: Britain’s economy, buckling under the credit crunch and a slowing property market, faces a “serious risk” of recession as firms face soaring costs and falling orders, according to a survey published on Tuesday. The British Chambers of Commerce (BCC), which represents the country’s business interests around the world, made the claim in a quarterly economic survey that polled almost 5,000 large and small businesses. In the second quarter of 2008, companies working in the services sector reported “alarming” falls in orders, which sank to the lowest levels since 1990, according to the BCC. Confidence among service companies was also at the lowest point since 1990, undermined by the rising cost of energy and raw materials. “The second quarter results signal a menacing deterioration in UK... [read full story]