UK business managers are preparing for a double-dip recession and also warn the private sector will fail to replace jobs lost to public sector cutbacks.
Only 8% of the 616 Chartered Management Institute(CMI) members polled for the organisation's half-yearly economic survey expected to see any growth in the economy over the next 12 months. More than two-thirds felt the economy will sink back into recession.
While 60% of managers expect their business to suffer from the reduction in government spending, 25% are critical about the way the programme is being handled.
The CMI said it saw little prospect of an early recovery and called for the coalition government to go further and faster with its deficit reduction programme, the Telegraph reports.
This would improve longer-term prospects and introduce incentives to provide some growth stimulus, it said.
The survey results also delivered another blow to the government's hopes the private sector can fill the gap left by the public sector rundown, according to the Telegraph.
It shows private sector managers are most pessimistic about the employment outlook with 81% expecting further cuts compared with 73% in the public sector.
EIS and Seed EIS sectors
'Truly making a difference'
Avoidance, evasion and non-compliance
From 6 April 2019