Business Advice for all UK firms from starting a business to flotation
One in three chance of recession
The UK faces a one in three chance of going into a recession over the next two years, according to a report by investment bank Lehman Brothers.
The report warns that rising mortgage rates will cut the amount of money consumers spend, which could have a detrimental impact on consumer-facing businesses and company spending.
It also predicts that house prices will fall by 8% by the end of next year. "Given the importance of housing wealth for consumer spending, this points to an economic slowdown that could last some time," the report said.
A recession is defined as two consecutive quarters when the economy shrinks.
Post Date: March 31st, 2008