Fresh from the gloom spread by a Panorama special on livingwith the credit crunch a global economic think tank has predicted the recessionwill start in the UKthis year.
Anecdotal evidence from the channel reveals that August wasa poor month but those wondering if it was due to holidays or recession are waitingto see what the crucial fourth quarter brings.
“September is the biggest month for the channel afterDecember and so the next few weeks are going to be crucial,” said one source.
"I wake up everyday and wonder is this the day the credit crunch hits me? But we are still growing, hiring and recruiting and still expecting growth this year," said another contact in distribution.
Things will not have been improved by the announcement fromthe Organisation for Economic Cooperation and Development (OECD) that the UKeconomy did not grow in the second quarter and it will shrink in the thirdproducing two flat quarters, the definition of a recession.
The think thank pointed to fuel and food price pressure andthe housing crisis as factors that were undermining economic performance in theUK.
The OECD forecast is the worst yet for the UK economy and comes on the day thegovernment attempted to kick-start the housing market.
Evidence of the economic impact on the channel will onlyreally come in the next few weeks as trading for September continues.