Slowdown will stay local
Mon 21 Apr 2008
21/04/2008
An economic slowdown is likely to have more regional effects, the National Federation of Enterprise Agencies has said. Commenting on the possible affect on businesses, George Derbyshire, chief executive said firms that are exposed to the commercial property markets may struggle. However, he added: "I suspect that the impact of the slowdown will be concentrated less on specific sectors and more on geographic areas." Despite efforts by the Bank of England to increase the amount of money in circulation, banks are finding it hard to raise cash and some have cut jobs. "If we see a reduction in employment (such as in the City) there will be widespread knock-on effects on businesses in that locality," Mr Derbyshire commented. The most recent data from the Office for National Statistics showed more people than ever are in work.
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