Stagnation the theme for 2012 says BCC

The BCC's quarterly economic survey showed dwindling confidence across key indicators including employment, cashflow, exports and investment. David Kern, BCC economist said: "The results point to a worsening in the economic situation, with signs that the UK recovery is stalling. The survey shows stagnation in manufacturing and minimal growth in services in Q4 2011. The forward-looking home order balances moved deeper into negative territory, and highlight risks of declines in domestic activity early in the New Year." Manufacturing balances for home orders stood at their lowest level since late 2009, the BCC survey showed. Export sales fell six points to +12%, the BCC data reported. Confidence over new export orders was also on the slide. The pessimism has sparked a fall in businesses looking to expand workforces, the BCC reported. The employment expectations of manufacturers fell 18 points to -8% according to the survey. John Longworth, Director General of the BCC, said: "A new recession is not a foregone conclusion. However, action is needed urgently to tackle short-term stagnation and a lack of business confidence, damaged by the ongoing eurozone crisis." The BCC called on the government to aid stricken businesses with measures to improve cashflow and investment in road and rail infrastructure.