Double dip recession 'unlikely'

A leading economist has said that a "double dip recession" looks unlikely after a recent financial report suggested confidence was growing among UK businesses.

The positive financial report from Lloyd's TSB found rising confidence in sales, orders and profits amongst UK businesses, a possible sign that the economy and Sterling exchange rates could be on the road to recovery in 2010.

When asked about the report, Alan Clarke, a UK economist at BNP Paribas, did admit that a "soft patch" was likely, though he denied reports that the UK economy would fall back to the lows of early 2009.

Mr Clarke said: "'Double dip' is probably putting it a bit too strongly."

He added: "We are coming out of the recession, we will have a quarter or two of decent growth but then I think we will go back down into a soft patch."

Lloyd's TSB found that UK business confidence has hit a two year high among the 1,732 UK businesses it surveyed.

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Posted by Sarah Rocca