One third British business bosses fear recession in 2012

One third British business bosses fear recession in 2012

Around 35 per cent of directors of British business firms think there is a high risk of a recession this year, says a survey.

A poll by the Institute of Directors (IoD) said that of the 1,000 directors polled, about 53 per cent said they envisioned a moderate risk of recession, while only 11 per cent saw a low or very low risk of recession this year.

According to the IoD, the business leaders were relatively confident despite the country's weak economic outlook, Xinhua reported. If a recession were to occur, around 43 percent of the directors polled believed it would be short and mild, and 33 percent said it would be long but mild.

Only 10 per cent believed Britain would suffer a long and deep recession. Companies appeared to be relatively optimistic about their own business prospects, the survey showed, with 50 per cent expecting higher revenues in 2012 than in 2011.

About 40 per cent of the companies expected their profits to increase in 2012, and 32 per cent expect their profits to drop.

However, the companies were cautious about increasing business investment and employment.

Around 27 per cent of companies thought employment would be higher this year while 25 per cent thought it would be lower.