BDO data suggests triple dip

THE prospect of a triple dip recession is looming according to the latest data from accountancy firm BDO.

Its Business Trends survey shows confidence is weakening, as its Output and Optimism indices retreat from a score of 95 that indicates growth.

It is the seventh consecutive month where both indices have remained below 95.

Following a marginal improvement in the final quarter of 2012, the Output Index – which predicts short-run turnover expectations – decreased to 93.1 from a reading of 93.4 last month.

The picture two quarters ahead is equally bleak, with BDO’s Optimism Index dropping to 90.3 from 91.4 in December’s report.

Partner Jeff Jones said: “Our latest report indicates that many businesses are in a state of limbo, as ongoing volatility in the US and eurozone, coupled with sluggish GDP growth, is leaving them reluctant to hire and make plans for growth.

“Diversifying trade from the unstable eurozone is a must, and it is heartening to see businesses trading more with alternative regions; official figures released last week show that the eurozone now makes up only around 50% of UK exports.”