Impact of the credit crunch worsens

Managers across the country are increasingly looking to cut costs as the credit crunch starts to hit firms outside of the financial sector for the first time, a new study has found.

The research, conducted by Baker Tilley, found that the challenges posed by the current economic downturn are steadily increasing.

It found that 32 per cent of respondents believe that the credit crunch is now having an impact on their firms.

Of these, 60 per cent said that profits are falling and 23 per cent have experienced problems with financing.

Laurence Longe, Baker Tilly's national managing partner, said: "Most [companies] are considering belt tightening and are proposing increased vigilance to deal with the tough market conditions.

"We are in a period of uncertainty and companies are focusing more attention towards internal controls and assessing external risks."

Earlier this month, the Centre for Economics and Business Research claimed that 11,000 finance jobs in the City of London will be lost this year.

Source: www.i-l-m.com