The chance of the UK economy sliding into a recession is now "more likely than not", according to one sector commentator.
In news that may be of interest to those seeking unsecured loans, Howard Archer, chief European and UK economist at Global Insight, said the housing market, credit crunch and rising food and energy prices were all putting pressure on the current financial climate.
He warned: "I think the consumer is going to retrench quite markedly over the coming months."
Although Mr Archer acknowledged that a recession was never inevitable, his company expected to see a mild period of it in the future.
Recession is defined as two consecutive three-month periods in which the gross domestic product of a country decreases, according to Fool.co.uk.
In additional news that may be of interest to those wishing to take out unsecured loans, a report published this week by the Organisation for Economic Cooperation and Development predicted that the UK economy will grow by just 1.2 per cent for the whole of 2008.
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