Recession 'within months'.

The UK is facing a serious risk of recession within months, the findings of a survey of almost 5,000 small, medium and large businesses suggest. The British Chambers of Commerce's (BCC) quarterly report found the credit crunch and rising costs had dented the most important sectors of the economy. BBC News has an interview with David Frost, Director General of the BCC, where he talks about the changing mood of small/medium sized businesses. (Link to BBC News)

Good article by Larry Elliott in The Guardian (Click for link) in which he questions whether the official definition of a recession (two consecutive quarters of negative growth) is the most helpful measure in explainign the position the economy is in... 'an economy would not be in recession if it contracted by 5% in the first quarter, expanded by 0.1% in each of the following two quarters and then contracted again by 5% in the fourth quarter. '

News today that house prices continue to fall, down 2% in June (Link), house builder Barratt cuts jobs (Link) and that times are becoming even tougher for first-time buyers (Link).

How much money do we need to live?

A single person in Britain needs to earn at least £13,400 a year before tax for a minimum standard of living, the Joseph Rowntree Foundation (JRF) says. A couple with two children need to spend £370 a week and a pensioner couple need £201 excluding housing and childcare costs, the charity says. Film tickets, a bottle of wine and a bird feeder were on the list of goods people need to participate in society. There is a graphic on the BBC News site showing the varying amounts for different groups broken down by category of expenditure. (BBC News)

According to The Guardian, the report said families without a working adult received about two-thirds of the minimum budget in state benefits. Single people without work received less than half of the minimum budget in benefits. The basic state pension gives a retired couple about three-quarters of the minimum income, but claiming the means-tested pension credit could top up their income to just above the minimum standard, the report said. The study found that almost everybody classified as being in poverty had an income too low to pay for an "adequate" standard of living as defined by the panellists. (The Guardian)

Further confirmation of slowdown in housing market

UK house prices fell by 0.9% on average last month, according to the latest survey from the Nationwide. The decline was less severe than the record 2.5% fall seen in May, but prices were now 6.3% lower than a year ago. The Nationwide survey found that the housing market in Scotland had been more resilient than elsewhere. Although prices in the three months to June had fallen in Scotland by 1.8% compared with the previous quarter, it was the only area to see an annual growth, up 0.6%. (Further details here)

This survey follows news yesterday of a record low for mortgage approvals. The Bank of England said 42,000 homes were approved in May, a 28% fall compared with the previous month and 64% down on a year ago. This is the lowest since the Bank began reporting the figures in 1993 and lower than many analysts' predictions. Mortgage lending has slumped owing to the credit crunch with institutions reducing their willingness to lend. (Click here for details)