A potential economic slowdown may give recruiters cause for concern over the next year, according to one managing director.

Melanie Whitehall, of London secretarial specialists Matchstick Recruitment, told Recruiter that rising interest rates combined with a potential drop in the housing market could dampen demand and make it hard for some recruiters to stay in business.

"If the economy slows down, recruitment budgets tend to be the first to be cut back by companies, and that could affect recruiters," said Whitehall.

Whitehall set up Matchstick in March, and the firm has grown from a headcount of one to six.

Whitehall recently expanded the firm with the addition of Matchstick Media, and suggests that the firm's next move could be into a new market. "I would like to think that over the next 10 months we could move into HR," she said.

Whitehall attributes the success of her company to its size. "We're only a small organisation but that has helped us, because some of the bigger companies can lose their individuality," she explained.