In actual fact, the numbers closely mirror the outcome of the British Chambers of Commerce (BCC) quarterly economic survey - Britain's biggest business inquiry - which showed that it was still too early to call a definitive end to the recession.
These grim numbers mean that sustained action to support businesses and investment will be required over the coming months. The stimulus provided by the Bank of England's monetary policy must be maintained - and in the case of quantitative easing, expanded still further to ensure that increased money supply translates into renewed bank lending to SMEs across the country.
The government must also play its part. Many of the good schemes put in place to help businesses through the worst of the recession, such as the Enterprise Finance Guarantee and Enhanced Capital Allowances, are due to come to an end by April 2010. As we approach the Chancellor's annual pre-budget report, it is time for ministers to agree the extension of these schemes - which could then provide invaluable support to viable companies over the coming financial year and beyond.
The impacts of the ongoing recession are different from city to city and region to region. In some areas of the Midlands and the North, any return to growth could lag behind areas in the South
Even with schemes in place to assist solid businesses, there are still tough times ahead. Unemployment, always a lagging indicator, will continue to rise, and may hit three million during 2010. Business insolvency rates will also rise. The public sector, which has so far been relatively immune to the recession, will face pain of its own as necessary public spending cuts begin to bite.
As Chambers of Commerce around the country report, the impacts of this ongoing recession are different from city to city and region to region. In some areas of the Midlands and the North, any return to growth could lag behind areas in the South for a considerable amount of time.
All of the information available suggests that a major re-balancing of the UK economy will be required in future. The consequences of an economic boom fuelled by financial services, public spending, and a property bubble must not be allowed to return to haunt us. In future, a more diversified economy, with a far greater focus on exports in both services and manufacturing, will help to prevent a recurrence.
How do we get from where we are today to a more balanced, economically sustainable future? The BCC believes that policy attention needs to be focused on three areas: rebuilding Britain's crumbling infrastructure, minimising the regulatory and tax burdens facing British business and providing the right policies to support a significant expansion of the UK's international trade.
Taken together, these moves will help the private sector drive not just short-term recovery, but long-term prosperity. The mission facing the government, the Bank of England and international organizations is to restore global confidence - and promote the recovery of demand. It's then up to business to do the rest.
For more information please visit www.britishchambers.org.uk
