UK managers expect double-dip recession
Published 04/10/2011 | 09:12
BRITISH business managers are predicting a double-dip recession with the private sector failing to replace jobs lost to public sector cutbacks.
The UK’s Chartered Management Institute (CMI) said it saw little prospect of an early recovery.
It called for the coalition Government to go further and faster with its deficit reduction programme to improve longer-term prospects and introduce incentives to provide some growth stimulus.
Only 8pc of the 616 CMI members polled for the organisation's half-yearly economic survey expected to see any growth in the economy over the next 12 months, and more than two-thirds felt the economy will sink back into recession.
The survey results also delivered another blow to British government hopes that the private sector can fill the gap left by the public sector rundown.
They show private sector managers are most pessimistic about the employment outlook with 81pc expecting further cuts compared with 73pc in the public sector.
There are also signs of impatience with the speed of the spending cuts. While 60pc expect their business to suffer from the reduction in government spending, 25pc are critical about the way the programme is being handled..