More signs UK economy may be facing recession with British Chamber of Commerce quarterly survey of 4,800 businesses finding domestic sales and orders results for service and manufacturing sector both turned negative - 1st time since recession of early 1990s; percentage balance of manufacturing firms that saw domestic sales rise fell to lowest level since 2001, at minus 3% in 2Q vs +12% in 1Q while in service sector, balance of firms seeing sales rise dropped to minus 2% vs +17% in 1Q. Employment expectations and confidence about profitability fell to lowest levels since 1990s recession in service sector.
Comes amid raft of recent data which have made a recession appear more likely, but BCC survey also shows no cause for complacency on inflation; balance of manufacturers expecting to hike prices in coming quarter rose to 45% from 42% in 1Q - a new record. Still, BCC doesn't see need for rate hike; says if wage pressures remain muted, option of early rate cuts must be considered. BoE meets this week, is expected to stand pat on rates.
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