The publication of the British Chambers of Commerce’s Quarterly Economic Survey for Q3 2008 paints an increasingly gloomy picture of Britain’s business.

The domestic economy is under immense pressure for the second quarter in a row, with the survey results showing that the UK is now in a worsening recession.

Key results from the survey show:

• Domestic balances, sales as well as orders, have moved deeper into negative territory, for both manufacturing and services
• All firm sizes, in both sectors, show negative Q3 domestic balances, a disturbing and unusual situation
• Manufacturing export balances plummeted in Q3
• Collapse in confidence across sectors
• All confidence balances, turnover as well as profitability, fell to record lows in Q3, for both manufacturing and services
• Cashflow balances remain negative in this quarter
• Recruitment dip across sectors
• Investment balances in plant and machinery moved into negative territory for both sectors

BCC Director-General David Frost said:

“We are clearly in a very difficult economic period but it is important that we retain a sense of proportion. Many parts of the business community continue to perform well.

“Confidence is critical and it is vital that businesses are shown leadership. The BCC will be showing such leadership in the coming months.

“The Government needs to say that business taxes will be cut. The Bank of England need to cut interest rates immediately and politicians need to get behind our businesses in these challenging times. ”

Read more on the BCC website.

Read a summary of the QES Q3 on the BCC site [PDF]

This story on the BBC

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