Economic downturn ups UK business slide

Analysts predict slide into recession.

Growing numbers of analysts are backing the claim that the UK is slipping into a recession.

Following comments last week by Richard Holway, analyst Experian issued alarming new data. In its report, falling business investment and profitability has led to job losses, factory closures and reduced forecasts for growth.

The company claimed that profitability fell for the seventh consecutive quarter in the 12 months to December 2000, representing a 15 per cent decline across the year.

"By the end of last year, the British economy was showing worrying signs of slipping into recession," said Peter Brooker, author of the report.

"The factors that have led forecasts for economic growth in 2001 to be reduced were already present during 2000. The decline appears to be gaining speed."

According to the report, the decline in profitability among technology-based companies trebled between Q3 and Q4 last year, and there is more to come.

Experian, however, claimed the telecoms sector has yet to feel the effects of the slowdown and the drop in demand for mobile services.