Credit crunch getting even worse say FDs
Two thirds of finance directors think the credit crunch is going to get worse, according to a recent research by one of the Big 4 accountancy firms.
The results reveal that finance directors are preparing for tougher market conditions, as access to credit becomes harder. More than three quarters of the 83 chief financial officers surveyed said credit is now hard to obtain, up from 63 percent in March and 48 percent in September last year. The report revealed more than half of the respondents expect consumer prices to rise in response to soaring oil and commodity prices.
The economy is at ’serious risk’ of sliding into recession within months
The economy is at ’serious risk’ of sliding into recession within months, according to recent research released from the British Chamber of Commerce. Small and medium-sized employers in the manufacturing and services industries said sales and orders from UK customers have started to dry up in the past three months. The British Chambers of Commerce, which carried out the survey of almost 5,000 of its members, said that if the trend continues the start of a recession could be just months away. British businesses are preparing for an economic slowdown amid widespread expectations that business prospects for the coming year are dimming. Industry commentators have indicated the economy will probably avoid a deep recession but is likely to experience a mild one.
Recent research from Badenoch & Clark revealed that accounting and finance professionals are starting to feel the effects of the economic downturn in their office lives. Accounting and finance professionals reported the lowest morale out of all sectors in a recent study, with 28% saying morale at their organisation was “very low.” One of the key drivers behind the low moral may be the increased workloads seen since the start of the year. Seventy-two percent of the profession reported a higher workload since the beginning of 2008 and around half (48%) reported people leaving and not being replaced at their company – more than in any other profession.
It seems that accountants are facing more challenges than most other parts of the economy, as a result of the current conditions. These figures show that it is now having a direct and significant effect on the morale of people in the profession. There is a big danger for employers that if they push their people issues to the bottom of the list of priorities while they weather the storm, they will find themselves with an exodus of disgruntled employees once the economy recovers.
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