It’s not just the U.S. that’s facing an economic downturn. According to the British Chamber of Commerce, the United Kingdom could be facing a major recession within as little as three months. The BCC carried out a survey amongst it’s 5000 members across all industry sectors. It’s economic advisor, David Kern, said the results showed a ‘menacing deterioration’ in Britain’s prospects.

‘We are now facing serious risks of recession,’ he said. ‘The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected.’

On the same day, an article in The London Paper, gave a run down of the industries and sectors that were most likely to prosper or fail if the UK experienced a full blown economic recession. Here’s a summary of the article.

UK Credit Crunch Winners

Pawnbrokers

The National Pawnbrokers Association has experienced a 30% increase in business in the past 6 months. As banks make it harder to borrow, growing numbers of people are pawning their valuables to get an instant cash injection.

Budget Retailers

Customers are shunning upmarket grocery stores such as Waitrose and Marks and Spencers in favor of budget chains such as Lidl, Morrisons and Asda. Discount supermarket chain Aldi has reported a 25% increase in sales since the beginning of 2008. Cut price clothing chain, Primark has seen profits rise 22% in the 6 months to March.

Dating Websites

The online dating agency, Plentyoffish.com has reported a four-fold increase in new signups in the last two months. Website manager Steve Moylan reckons people are looking for ways of meeting potential partners without going out and spending loads of money. “Single people living alone are feeling the pinch more than others” he says.

Low End Hotels and Restaurants

To money conscious consumers, budget hotels and eateries are a far more attractive option than their pricier rivals. Bob Cotton of the British Hospitality Association says,
“We’re not seeing the same adverse impact on the hospitality industry as we did during the last recession.” This is because people have got into the habit of eating out and staying in hotels. But it is the budget end of the market which is doing best.
He added “Fast food outlets such as Burger King and McDonalds are showing real growth, as are the budget hotels”

Takeaway Food

The UK’s best known pizza chainis currently enjoy a brisk trade. Sales in the 16 weeks to April 20th reached £105.3m - 21.3 % up on the previous year. CEO Chris Moore commented, “we benefit from an economic downturn because people spend less money going out and more on staying in”

Bailiffs

As more and more people are unable to pay back loans and court fines, it’s the bailiffs who come knocking to collect the money. The Martson Group, a national bailliff company is receiving 1500 cases a week of unpaid fines issued by magistrates courts at one branch alone. Manager Mike Marrs says ” business is definitely growing….and the industry looks set to get stronger as the economic downturn continues”

Bicycle retailers

As fuel prices escalate, many are choosing to leave their cars at home and cycle instead. Whilst the new car market fell by 6.1 % compared with figures taken in June 2007, bicycle retailer Halfords says profits have surged by 7.2% in the same period.

UK Credit Crunch Losers

Estate Agents

The end of the UK property boom of recent years is well and truly upon us. Estate agency branches are closing at the rate of 150 a week. some predict that a third of the countries 12,000 firms will be out of business by December 2008.

The Construction Industry

Denise Dersin of Builder magazine says that 30,000 jobs are expected to go in the trade this year. Persimmon, a mpajor British housebuilder recently announced that it would cut 1100 jobs.

Removal Companies

Fewer people buying and selling properties means less people moving house. This decline has seen the removal business’s worst period for 20 years. Hundreds of workers have been laid off according to the British Association of Removers..