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| Version 4 | Version 5 |
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| UK economy downturn 'frightening' | UK economy downturn 'frightening' |
| (30 minutes later) | |
| Business leaders have painted a bleak picture of the UK economy, with a survey suggesting a "frightening deterioration" towards the end of 2008. | Business leaders have painted a bleak picture of the UK economy, with a survey suggesting a "frightening deterioration" towards the end of 2008. |
| The British Chambers of Commerce (BCC) said its survey results were "awful" and the worst since it began in 1989. | The British Chambers of Commerce (BCC) said its survey results were "awful" and the worst since it began in 1989. |
| Elsewhere, a separate report suggested it had been the worst December for UK retail sales in at least 14 years. | Elsewhere, a separate report suggested it had been the worst December for UK retail sales in at least 14 years. |
| On 23 January, official figures are set to confirm the UK is in recession with six months of negative growth. | On 23 January, official figures are set to confirm the UK is in recession with six months of negative growth. |
| Margins hit | Margins hit |
| The British Retail Consortium figures on sales from the High Street and online said that like-for-like sales in December were down 3.3% on a year ago while total sales shrank 1.4%. | The British Retail Consortium figures on sales from the High Street and online said that like-for-like sales in December were down 3.3% on a year ago while total sales shrank 1.4%. |
| Many hard-pressed customers couldn't be seduced into spending Stephen RobertsonDirector-general, BRC Tesco sees 'challenging' trading | |
| This made for the worst December since the survey began in 1995. | This made for the worst December since the survey began in 1995. |
| Some High Street retailers, including Sainsbury's and Greggs, have been reporting strong Christmas trading - suggesting that the economic picture is not yet entirely bleak. | Some High Street retailers, including Sainsbury's and Greggs, have been reporting strong Christmas trading - suggesting that the economic picture is not yet entirely bleak. |
| But food retailers were almost the only sector to show growth, the BRC said, amid what it described as "truly awful numbers". | But food retailers were almost the only sector to show growth, the BRC said, amid what it described as "truly awful numbers". |
| "Non-food retailers had a torrid December despite a blizzard of promotions and deals, which would have hit margins," the BRC's director general Stephen Robertson said. | "Non-food retailers had a torrid December despite a blizzard of promotions and deals, which would have hit margins," the BRC's director general Stephen Robertson said. |
| "Many hard-pressed customers couldn't be seduced into spending." | "Many hard-pressed customers couldn't be seduced into spending." |
| Earlier, supermarket giant Tesco reported a 2.5% increase in like-for-like sales in the key Christmas period. | |
| 'No positives' | |
| The BCC report, based on a survey of almost 6,000 firms which employ 680,000 people, pointed to plunging domestic demand, falling exports and plummeting confidence in the last three months of 2008. | |
| Quite frankly the last time I saw anything of this magnitude of decline was when I worked in the West Midlands in the early 1980s David FrostDirector-general,British Chamber of Commerce | |
| "It is clear that the UK economy is facing a very serious recession, and the downturn is deepening at an alarming pace," said the BCC report based on a survey of almost 6,000 firms which employ 680,000 people. | "It is clear that the UK economy is facing a very serious recession, and the downturn is deepening at an alarming pace," said the BCC report based on a survey of almost 6,000 firms which employ 680,000 people. |
| "The results highlight a frightening deterioration in the UK economic situation." | "The results highlight a frightening deterioration in the UK economic situation." |
| Its latest survey - which covered the last three months of 2008 - showed "no positive features" it added, with both the manufacturing and service sectors worsening. | Its latest survey - which covered the last three months of 2008 - showed "no positive features" it added, with both the manufacturing and service sectors worsening. |
| Manufacturing, home sales and orders, employment expectations, investment, confidence and cash-flow have all hit record lows. | Manufacturing, home sales and orders, employment expectations, investment, confidence and cash-flow have all hit record lows. |
| In the service sector, every key area was at a new low. | In the service sector, every key area was at a new low. |
| BCC director general David Frost called for a national recovery plan to be "rolled out as soon as possible". | BCC director general David Frost called for a national recovery plan to be "rolled out as soon as possible". |
| "These are truly awful results with the scale and speed of the economic decline happening at an unprecedented rate. | "These are truly awful results with the scale and speed of the economic decline happening at an unprecedented rate. |
| "Quite frankly the last time I saw anything of this magnitude of decline was when I worked in the West Midlands in the early 1980s," he said. | |
| "The sheer scale of this comes as a surprise to many of us." | "The sheer scale of this comes as a surprise to many of us." |
| Printing money | Printing money |
| The BCC's chief economist David Kern said that he now expected the UK economy to shrink by up to 2.4% in 2009, rather than the 2.2% he had earlier forecast. | The BCC's chief economist David Kern said that he now expected the UK economy to shrink by up to 2.4% in 2009, rather than the 2.2% he had earlier forecast. |
| "One must say that unfortunately in terms of GDP, this recession is worse than in the 1990s," he said. | |
| The manufacturing sector is gloomy about its outlook, the survey found | |
| But he added it was not worse than the 1980s, so it was still possible "to avoid a prolonged depression". | |
| Last week, the Bank of England cut the cost of borrowing from 2% to 1.5% - the lowest since the Bank was founded in 1694. | |
| Mr Kern said more rate cuts were likely, but that the authorities would have to go further to avoid a prolonged depression, including printing more money. | Mr Kern said more rate cuts were likely, but that the authorities would have to go further to avoid a prolonged depression, including printing more money. |
| "The MPC is running out of conventional bullets," he added. | "The MPC is running out of conventional bullets," he added. |
| The suggestion that investment in factories and machinery was at record lows was particularly worrying, said Ross Walker, chief UK economist at Royal Bank of Scotland. | The suggestion that investment in factories and machinery was at record lows was particularly worrying, said Ross Walker, chief UK economist at Royal Bank of Scotland. |
| This indicated that private sector firms would see their capacity for recovery hindered when the UK came out of economic crisis, he said. | |
| Do you work in the retail sector? Have you been affected by the downturn? Send us your story using the form below: | Do you work in the retail sector? Have you been affected by the downturn? Send us your story using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |
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