Businesses expect annual turnover to fall
Most businesses in the UK expect their turnover to fall over the next 12 months, according to the British Chambers of Commerce (BCC).
In its Q2 2020 economic survey, the BCC polled 7,706 businesses, most of which are reeling from the impacts of the coronavirus.
Sales, orders and cashflow all slumped to their lowest levels on record in the three months to 30 June 2020.
Domestic sales fell 73% and exports sales were down 63%, while cashflow worsened for 64% of businesses in the April-June quarter.
As a result of COVID-19 closing most parts of the UK economy, 58% of business owners expect turnover to fall over the next 12 months.
Just three months ago, in the BCC's survey for Q1 2020, 56% of owners predicted turnover to increase.
Suren Thiru, head of economics at the BCC, said:
"With lockdown restrictions steadily easing, the second quarter is likely to prove to be the low point for the UK economy.
"However, the collapse in forward-looking indicators of activity suggests that unless action is taken, the prospect of a swift and sustained recovery may prove too optimistic."
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