79% of population believe UK Economy is in or on the verge of recession

A NEW MONTHLY POLL OF 1,000 PEOPLE ACROSS THE UK SHOWS THAT 79% OF THE POPULATION BELIEVE THE UK ECONOMY IS EITHER IN OR ON THE VERGE OF A RECESSION.

The poll was conducted by the business consultants between 25^th and 27^th July and showed Northern Ireland to be the most concerned about the current economic climate whilst those in Scotland seem to be least worried.

88% of those polled in Northern Ireland believe the UK economy is either in or on the verge of a recession, compared to 84% in Wales, 79% in England and 66% in Scotland.

The independent research asked the uncomplicated question “Is the UK economy in a recession?” The four simple answers were yes, no, on the verge of one or don’t know. “Our aim is to gain an accurate and honest measure of consumer perceptions on the economy as UK retailers start finalising their plans for Q4 2008. With the internet and home shopping becoming a preferred way to shop, we felt it important to understand the trends throughout the country so retailers can target their campaigns more specifically.” commented Rob Galkoff of the business consultants.

the business consultants have devised a formula that scores each answer to work out the average attitude to recession of some of the main regions in the UK.

Table 1 - Attitude to Recession by region (25th-27th July 2008)  ©the business consultants

But is the news good or bad for Treasurer Alistair Darling and Prime Minister Gordon Brown? The general feeling around the country appears to be one of gloom and possible despair, but there are some deep contrasts that suggest some of the pressure is actually localised and might be being driven by speculation and hype. The disparity between regions can be startling, especially between South Wales, with a TBC Weighting of 116, and Avon and Somerset with a TBC weighting of 85. The old English North/South divide is starting to show some evidence again with the North East feeling the onset of tougher times more than Yorkshire and the North West.

The results also showed that 79% of both men and women believe the UK is in or on the verge of recession. The most pessimistic age group, who have the most spending power, are the 35-49 year olds where 89% believe the economy is suffering badly, whilst 75% of those under 24 believe times are more difficult at present.

Rob Galkoff of the business consultants commented “the general consensus is that the UK economy is under considerable strain and the general public are starting to get worried. It’s time for business to batten down the hatches and prepare for difficult trading conditions. We firmly believe that consumers will continue spending in the run up to Christmas, but they will be looking for new and more niche products with keener prices this year as they continue spending more wisely.”

“From a retailers perspective” continued Galkoff “there could be some huge opportunities to gain extra market share as competitors take their eye of the ball and get caught with the wrong product or too much of it and have to start discounting in the January sales. There will be casualties in 2009 that will be swept up by their stronger competitors.”

ends.

The online poll of 1,000 people was carried out between 25^th and 27^th July around the UK. The split was 44% women and 56% men. The age of those polled was 13-49+ of which under 10% were aged below 17. The findings are the copyright of the business consultants ltd (www.thebusinessconsultants.co.uk) and can be reproduced with reference.

Rob Galkoff, CEO the business consultants, is available on Tuesday 29^th and Wednesday 30^th July 2008.

He can be contacted by:

-         calling 0844 88 88 499

-         or emailing rob@thebusinessconsultants.co.uk