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Fewer London job cuts—but small firms still feel recession gloom

PUBLISHED: 07:00 12 February 2010 | UPDATED: 15:36 05 October 2010

FEWER small in London have made job cuts in the past six months as businesses get to grips with the recession, a survey out this-morning shows. But they still dubt the economic downturn has finally levelled out, say analysts

By Mike Brooke

FEWER small firms in London have made job cuts in the past six months as businesses get to grips with the recession, a survey out this-morning shows.

But there’s still gloom with lack of confidence’ that the economic downturn has finally levelled out, say analysts.

Only a third of small firms in the survey have shed jobs since last summer, which was 13 per cent better than the previous quarter, according to Clifton Asset management analysts.

Yet company bosses are still not sure the recession is ending, say the analysts.

“They don’t see any proper recovery on the horizon until 2011,” said Clifton director Anthony Carty.

“That’s despite the UK now officially out of recession.

“Many firms are certain to be affected by looming public spending cuts while others are hamstrung by the banks unwilling to support them.”

Yet the number of companies planning to reduce their payroll further in the coming six months has halved from 16 to just eight per cent, the lowest figure of any region in the country.

The survey follows the latest official figures from the Office for National Statistics showing a slight fall in Britain’s unemployment, the first in two years.


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