The economy shrank in the third quarter for the first time since 1992 and at a faster rate than previously thought, official data showed today. CBI Comment

“This is the steepest decline in GDP since the final three months of 1990, reflecting a marked slowdown in both the production and service industries. However, there is some evidence of an improving trend in the balance of payments figures and in household savings, which may be a sign of things to come.”

However as the National Accounts data is produced at least seven weeks after the end of a quarter this is always going to be a ‘rear-view’ mirror as opposed to a road-a-ahead outlook.

During relatively stable times this is all fine and dandy – however riding the current rollercoaster you know you’re in a dip because you’ve felt yourself or seen others falling.

Commenting on the latest GDP figures:

Nick James, founder of www.freshbusinessthinking.com said, “Yet again the headlines are screaming bad news, because bad news sells. We all know the economy is on the edge of a cliff and that Gross Domestic Product is an integral part of the UK national accounts but quite frankly telling us that we were in a bad way 3 months ago doesn’t help.”

“I think that we are all anticipating an even gloomier year in 2009 but there is perception and reality and as business owners we need to make sure that we don’t get confused between the two.”

“How’s your business doing?” – is probably the most common question heard when entrepreneurs meet and do you now the answers are sometimes surprising!

Although it would be difficult to find a business not affected by the current economic downturn there are many businesses that are at worst holding their own and in many cases thriving.

We are living in challenging entrepreneurial times and challenges always bring opportunities – visit www.freshbusinessthinking.com for business ideas, information and advice with a healthy dose of reality thrown in for good measure.