The Chartered Institute of Management Accountants (CIMA) has stated that if UK businesses do not recover their confidence then the current economic climate could take a turn for the worse.
In news which could be of interest to business insurance customers, Victor Smart, a spokesperson for the organisation, said: "The situation at the moment is incredibly volatile. These are unprecedented times and it all hinges on confidence."
He added that if confidence does not increase then the UK could be heading for a "nasty recession".
Research from Tenon Recovery, the turnaround, recovery, restructuring and insolvency specialist published earlier this month shows that calls for assistance from a record number of businesses were received in both November and December.
The research highlights that the primary characteristics of a troubled business include a weak equity base, ineffective management, dependence on one client and substantial debtors.
It also found that as many businesses are having to cut profit margins means many firms will struggle to cope in the new year.
