Deloitte: Britain is entering recession KPMG: More than half of companies will cut jobs

According to the British "Sunday Times" report, Deloitte (Deloitte), a large accounting firm in the United Kingdom, stated that the British economy is facing a similar recession in the 1990s. Another accounting firm, KPMG (An Hou Jianye), pointed out that more than half of UK companies plan to lay off employees.
Deloitte in his quarterly report examined whether the devaluation of the pound sterling could prevent a recession in the export-oriented economy. Reporter Roger Bootle thought pessimistically that this was unavoidable.
He said that the devaluation of the pound since last summer should have led to better economic growth, as in the mid-1990s, but it has not been able to ease the credit crisis and is not enough to prevent the economic recession caused by a sharp reduction in corporate spending.
The United Kingdom announced on Friday (25th) that the economic growth rate in the second quarter fell to 0.2%. Deloitte pointed out that at least two quarters of the “technical recession” of GDP reduction in the future is already very certain. "If the job market deteriorates and interest rates do not fall, then the economic downturn in the early 1990s is not absolutely impossible."
The report predicts that the Bank of England will cut interest rates to 3.5% next year, which is currently 5%; but this is only a drop-in for the economy into the downside.
KPMG pointed out in its quarterly report on corporate confidence surveys that the proportion of companies interested in reducing the number of employees has increased from the previous 29% to 53%; overall, 60% of companies intend to tighten their costs in order to cope with the credit crisis.
Malcolm Edge, the author of the KPMG report, pointed out that the dark clouds that have been far away from the horizon online this spring are now overshadowed by the “perfect storm” of rising inflation, tight credit, and frustrated consumer confidence. Many companies have already Feel its impact.

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