Britain in recession: survey

LONDON, Oct. 7 (Xinhua) -- A survey of 5,000 firms by British Chambers of Commerce (BCC) released on Tuesday gave an "exceptionally bad" result signaling that Britain is already in recession.

The BCC Quarterly Economic Survey Q3 2008 received over 5,000 responses from businesses of all sizes and sectors.

The 2008 Q3 results are "exceptionally bad," followed by worrying results in the second quarter -- virtually all the key national balances have worsened, and many are in negative territory, the report said.

The result, which is interpreted recession for the country by Sky News, showed that the domestic economy is under immense pressure for the second quarter in a row.

Key results from the survey indicate that domestic balances, sales as well as orders, have moved deeper into negative territory, for both manufacturing and services.

Confidence across sectors also collapsed with all confidence balances, turnover as well as profitability, falling to record lows for both manufacturing and services, it said.

Cashflow balances remain negative in this quarter, while recruitment dip across sectors.

Investment balances in plant and machinery moved into negative territory for both sectors, according to the report.

Nevertheless, the BCC believes that if the government and the MPC (Monetary Policy Committee) act immediately to return confidence to UK plc, a major recession can be avoided.

"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," said BCC Director-General David Frost.

"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," he added.