The UK is "teetering on the brink" of recession, according to new data, prompting calls for a further round of cash to be pumped into the economy.
The latest Business Trends survey by accountancy firm BDO says the outlook for the UK economy, which is nearing contraction, remains bleak.
The organisation's business Output Index dropped for the seventh consecutive month to 91.4 in December, from 92.5 in November.
The index - which measures turnover expectations three months ahead - has now remained below the crucial 95.0 mark that indicates growth since July 2011.
At the same time, the firm's Optimism Index - which predicts business confidence in two quarters' time - dropped to 91.5 in December from 92.5 in November.
The accountants say the only cause for relief is that inflationary pressures are beginning to ease.
BDO partner Peter Hemington said: "As our data shows, there are areas for cautious optimism in the year ahead but it is apparent that the UK economy has reached a crunch point. The government must respond decisively if the UK is to avoid a period of prolonged contraction.

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