Some optimism in gloomy UK outlook

Calcutta News.Net
Sunday 20th July, 2008

Next year’s UK economic outlook has turned gloomier with business confidence fast evaporating.

Forecasters say growth will be just 1% in 2009, as rising living costs and falling house prices dampen consumer spending.

Confidence among employers has fallen to its lowest level since 1996, although retailers in central London have reported strong sales growth over the past month.

A series of bleak assessments have warned that the economy may be at risk of going into recession over the next year as people are forced to cut back on non-essential spending.

On the positive side, most firms still expect profits to be higher this year than last.

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