Consultants should brace themselves for a decade of difficulty caused by dire economic conditions, analysts warned this week.
New research from stockbroker Arden & Partners suggests that Treasury predictions seriously overestimate economic recovery, and that GDP is likely to shrink despite signs that the economy had grown for the first time in 18 months in the last quarter.
“While we accept that the impact of the [Treasury’s economic] stimulus [package] has resulted in short-term positive revisions, we believe a sustained recovery is unlikely,” said the research.
“Consultants have had the best 10 years they have ever had. They will now have the worst 10 years,” said analyst Geoff Allum.
Last week a Construction Products Association (CPA) survey revealed that 2010 will see rising materials and fuel costs on top of fewer orders.
New figures from the Insolvency Service show the construction sector remains fragile with 90 firms going into administration in the last three months of 2009.