Firms' confidence at record low

By Bate Felix

LONDON (Reuters) - Confidence among firms fell to its lowest on record in the third quarter as sales and orders tumbled, a survey from the British Chamber of Commerce said on Tuesday.

The BCC said its survey of over 5,000 businesses suggested Britain's economic recession has started and was getting worse.

Confidence balances for both manufacturing and services sectors fell sharply for a second consecutive month to their lowest level since 1989 while cashflow balances and recruitment also dipped across the sectors.

"Overall, the alarming Q3 results point to worsening dangers of major economic downturn and rising unemployment," said David Kern, economic advisor to the BCC.

"The results support the view that a UK recession has started and the downturn is getting worse. The domestic economy is under immense pressure," he added.

Manufacturing sector's confidence balance plummeted 28 points to 4 percent while profitability confidence plunged 16 points to -11. In the services sector, both figures fell 7 points to 10 percent and 13 points to -12 respectively.

Manufacturing sector's home sales net balance fell to -13 from -3, its lowest since 1999, while home orders dropped to -17 from -5, its lowest since 1998.

The services sector's home sales balance fell to -7 from -2, its joint lowest level since 1991 while home orders dropped to -13 from -7, its lowest since 1991.