Investors fear UK recession is 'genuine threat'

UK investors see the threat of recession as a very real fear.

A poll by the Association of Investment Companies (AIC) reveals 37 per cent of active investors see a recession as a real threat, and 26 per cent are concerned about a stock market crash.

For the general public 24 per cent fear a recession in the next six months, while the next greatest fear (for 17 per cent) is an interest rate rise.

Annabel Brodie-Smith, communications director at AIC, said: "The credit crunch and recent market volatility have created a trying time for investors and it has led to a fall in investor confidence.

"The biggest financial fear for all investors is a recession and the UK's love affair with property is coming to an end."

With concern over the credit crunch and fears over an impending recession, over a quarter of both active investors and the general public are changing the way they manage their money.

Some 28 per cent of the general public and 26 per cent of active investors are decreasing their spending and saving more each month.

Investors are also changing where they put their money, with the majority of active investors questioned saying equities would produce better returns than the UK housing market (52 per cent), an improvement on last year when 43 per cent were of this opinion.