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CBI: Business volumes fall in 'deepening' recession

13/01/2009

The Confederation of British Industry (CBI) has revealed business volumes and income and profitability levels have fallen due to the deepening recession.

According to a study by the CBI and PricewaterhouseCoopers 59 per cent of firms polled said volumes were down.

The research also revealed 55 per cent of firms reported profitability fell and worse hit were industrial and commercial firms.

Deputy director general John Cridland said 2008 was a year "the financial services industry would rather forget".

"The shortage of trade finance is hitting many industries and businesses," he added and called on the government "to take further steps to tackle these critical issues".

Merrill Lynch's owner, Bank of America, looks poised to cut up to 1,900 jobs from its London workforce, following the company's announcement it wants to reduce its workforce by 30 per cent.

One trader told the Times: "Everyone's really down. Last week we had to be interviewed for our own jobs."

 

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