IAB chairman offers up grim economic forecast

International Association of Bookkeepers (IAB) chairman Clive Johnson this week predicted that the current economic downturn will last for up to two years.

Johnson’s comments are broadly in line with many major economic forecasters as well as reflecting what businesses are experiencing at the ground level.

“We hear from insolvency practitioners that the numbers of business failures are going down, but that’s based on what my clients and their books are telling me, that’s not my experience,” said the IAB chairman and principal of KC & Co in Coventry on Monday. “Cash flows are still down and they’re not getting better.”

AccountingWEB.co.uk’s Economic Outlook poll backs up Johnson’s grim analysis with two-thirds of members polled during late November and early December thinking that economic trading conditions in 2011 will remain fairly stagnant without any appreciable movement.

The poll also uncovers a degree of uncertainty in the year ahead with 21% thinking it will worsen considerably and just 13% predicting a significant improvement in 2011 – mirroring the downbeat forecast from the Office of Budget Responsibility on 9 December.

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments
bookmarklee's picture

Bookkeepers may be a better barometer than insolvency practition

bookmarklee | | Permalink

Bookkeepers act not just for limited companies but also for unincorprated businesses (sole traders and partnerships). Many such businesses will cease operations when times get tough and will not require the involvement of an insolvency practitioner. They are only required when a business is insolvent. they do not get involved if the business owner (of a company or otherwise) gives up trying to make enough profit to make the business activity worthwhile.

Mark

www.BookMarkLee.co.uk

Inflation

Ian_mcdonald | | Permalink

My experience of just the last week ...

npower said 5.1% but increased my tarif ... +16%

Three mobile said they will have to pass-on the VAT increase, but no mention of anything else, so why ... +8.33%

Gym membership, ditto ... +10%

Supermarkets are having a field day, petrol prices volatile, etc., etc.

However, my pension fund is worryingly static and shows no imminent sign of improvement - time for me to jump on the bandwagon and increase my charge rate ?  (exc VAT, of course) (!)

- Ian McDonald IML Interim Management Ltd Finance~Accounting~Systems http://www.i-m-l.org

Hard Times Ahead - Again!

lawmaniz | | Permalink

Here we go again! Another recession. I remember the first of the modern post-war recession that happened in 1968... 'I'm backing Britain' was the slogan. Denis Healey, MP was Chancellor and he said he'd 'make the pips squeak.' (i.e. make the rich pips squeak). The then Prime Minister, Harold Wilson, complained about the gnomes of Zurich.  Since then we've had the oil crisis and recession that started in 1974 and lasted ... forever? Well, there was a temporary break during 1987-89 I suppose. Then came the recession of 1990 +. That last until Gordon Brown's (remember him?) 'boom 'n' bust of 1999-2008. What a party, eh? Heaven for accountants and all other bottom feeders. Now here we are in 2010 and living off the ill-gotten wealth we accumulated during the borrow and spend years. Are we in a recession? No. Are we  in a depression? No. Instead, we are going through a painful period of economic regression. What's that mean then? It means our living standards are going in reverse, including our pay and income. Not only that, inflation is going to be eye-wateringly high. Could it reach 27% as in the mid- 1980s under Tories? Probably. I would wish everyone a Happy New Year but the outlook is that for many it ain't gonna be that. Am I worried? Having lived through and survived the recessions/depressions since the mid-1960s, I'd say no. Just enjoy life as it is - remember, you can always emigrate (Australia is unaffected by the global financial crisis as is much of the Eastern economies.)

Supercal's picture

International Association of Bookkeepers

Supercal | | Permalink

The International Association of Bookkeepers? ? Really? What does the incororporated brotherhood of nadger grinders have to say? I'll bet the governor of the BOE hangs on every word! Strewth.

Gina Dyer's picture

Heed the bookkeepers

Gina Dyer | | Permalink

I'd like to refer you to Mark Lee's comment above, which I think explains very well why bookkeepers are a good barometer.