4,000 job cuts spark recession fears

Job cuts totalling 4,000 in the housing industry this week have sparked fears of a recession.

Off the back of job cuts from Persimmon and Redrow, analysts have warned a mild recession is inevitable.

The British Chambers of Commerce, which surveyed its 5,000 members, said a recession could be three months away if jobs and orders kept drying up.

Its economic advisor David Kern told the Evening Standard: “We are now facing serious risks of recession.

“The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected.”

A recession is defined as two consecutive quarters of negative economic growth.

Meanwhile, city bank Merrill Lynch warned it could take the housing market 20 years to recover from the downturn.