Businesses are losing confidence
Last updated 11:44, Tuesday, 22 July 2008
THE outlook for the UK economy next year is looking gloomier with business confidence fast evaporating, forecasters say.
Growth will be just one per cent in 2009, the Ernst & Young Item Club has predicted, as rising living costs and falling house prices dampen spending.
Confidence among employers, meanwhile, has fallen to its lowest level since 1996, the Institute of Directors said.
However, retailers in central London saw strong sales growth last month.
Like-for-like sales there were 8.7 per cent higher than a year ago, a marked contrast to the picture across the whole of the UK where sales fell 0.4 per cent.
A series of bleak assessments recently have warned that the economy may be at risk of going into recession over the next year.
