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Triple Dip Recession for the UK?

Official figures have shown that the UK could be on the way to a triple dip recession. Concerns have been raised after figures released on Friday showed that the UK economy contracted by 0.3% in the final quarter of 2012. This isn’t good news as although the contraction was only slight, to quarters of negative growth could push the UK back into recession, something that could impact on business confidence across the board.

The Office for National Statistics’ data shows that output shrank following a slight grow of 1% in the previous quarter. However, this positive growth was of course skewed upwards by economic impact of the Olympics.

These latest figures, on the other hand, have been dragged down by a sharp contraction in manufacturing and a flat service sector. However, there was some good news, with a more positive outlook for construction with output rising by 0.3%, compared to a fall of 2.5% between the second and third quarters.

Government plans are to continue cuts in order to limit spending and the budget deficit. John Cridland, CBI Director-General, commented; “After a difficult year, the UK economy has ended on a disappointed note. We think growth will continue to be fairly flat through the winter but momentum will gradually build later in the year, as the global economy picks up a little and confidence lifts.”

All this speculation about the economy could impact on the banks’ willingness to lend. If your small business is looking for funding, it could be worth researching outside the banks with alternative options such as invoice finance. This could help you buck the trend and post growth figures in the new year.

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