The Item Club’s latest forecast is that the UK may already have slipped back into recession. The think tank has said that the UK’s GDP shrank in the final quarter of last year and is very likely to contract again during the first three months of this year.
A survey carried out by The British Chambers of Commerce (BCC) has suggested that the UK economy is likely to remain weak for some time to come, but slipping back into recession is by no means inevitable.
However, the survey of more than 6,000 UK businesses also found that domestic demand is at its lowest level for more than two years. But the BCC said that the results do not indicate a recession and are still better than those seen in the