"Ongoing volatility in the U.S. and euro zone, coupled with sluggish U.K. GDP growth, is leaving them reluctant to hire and make plans for growth"
- BDO Partner Peter Hemington
Confidence among the U.K. companies deteriorated even further in December, suggesting the economy may contract in the coming months after emerging from a recession in the third quarter, according to BDO LLP. A gauge of business confidence, which is on the business trends report by accountants and business advisers, tumbled to 90.3 in December from 91.4 in the prior month. The index shrank for the seventh consecutive month, and fell below the crucial 95-mark, which indicates growth. Monday's reading points to a high possibility of a triple-dip recession in the first quarter of 2013, following the anticipated negative growth in the last quarter of 2012.
"Our latest report indicates that many UK businesses are in a state of limbo, as ongoing volatility in the US and eurozone, coupled with sluggish UK GDP growth, is leaving them reluctant to hire and make plans for growth," BDO Partner Peter Hemington said.
"Many U.K. businesses are in a state of limbo," Peter Hemington added later. "Ongoing volatility in the U.S. and euro zone, coupled with sluggish U.K. GDP growth, is leaving them reluctant to hire and make plans for growth."
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