Recession fears hit high point

Concerns over the economy are the highest in ten years, as fears of a recession grow.

The Ipsos Mori Political Monitor reveals crime/law and order is the British public's chief concern, followed by immigration and the NHS.

However, the economy has risen to its highest level since late 1998 and the East Asian financial crisis.

Further research shows only seven per cent of Brits feel the economy will improve over the next 12 months and 54 per cent think conditions will deteriorate.

The Economic Optimism Index currently stands at -47 per cent – a slight rise since January but still amid the lows last recorded after September 11th 2001.

Figures show coverage of the credit crunch – as borrowing becomes more difficult for consumers and businesses – and the slowing economy and housing market are starting to bite.

David Kuo, head of personal finance at Fool.co.uk, said: "The term credit crunch has become a part of our everyday vocabulary over the past eight months, but it’s instructive to see how people feel about a looming recession.

"In an economic downturn there will be opportunities and threats, and we can take steps to maximise the first and minimise the second. And simple measures such as reining in spending will ensure we have a pot of spare money tucked away to see us through a slump."

He added: "With money at your disposal, you can choose whether to pay down your mortgage or put it into a high-interest savings account - the choice is yours.

"It won’t make the credit crunch go away, but it will make life more bearable until it does."

A poll by fool.co.uk reveals 17 per cent of those surveyed believe the UK is already in recession.

However, while a recession is defined as a fall in GDP for two of more consecutive quarters, UK GDP grew 0.6 per cent in the fourth quarter of 2007.